Just like most currencies, ripple price also benefited from the US dollar’s weakness in yesterday’s trading. XRPUSD closed yesterday’s trading with a 4.33% profit when it closed at $0.2112. Now the question is, is there enough bullish momentum for the cryptocurrency to extend its rally?
Nationwide protests have weighed down on the US dollar especially after US President Donald Trump hinted that he could impose Martial Law. If dollar weakness continues, we could soon see ripple price trade to resistance around $0.2230. This price served as resistance from May 6 to May 9. It’s also noteworthy to point out that a double bottom chart pattern seems to have formed. This is considered as a bullish reversal indicator and is characterized by a market getting rejected at a support level twice. For ripple price, that level was $0.1910.
The cryptocurrency is now trading above the neckline resistance which was at $0.2082. Technical analysts could argue that XRPUSD may continue to trade higher to its near-term resistance. However, be wary of a close below $0.2000 because it could mean that there may still be sellers left in the market. Should this happen, we could see ripple price fall to support around $0.1912.