Ripple price moves in a tight range this August, finding stiff resistance at the 0.3 area. But the pattern looks like a bullish flag, a continuation pattern meant to break higher.
The frenzy surrounding the crypto market continues. This summer, we saw the Bitcoin price finally breaking above the $10,000 mark and consolidating there, a move that triggered a bid tone on all major cryptocurrencies. Ripple is one of them.
The tight correlations seen in the crypto universe is responsible for most of the important moves. For instance, if Bitcoin breaks higher or lower, the chances are extremely high that the Ripple price or Ethereum will follow. Maybe the market moves’ percentages will differ, but the main cryptocurrencies rarely move in contrarian directions.
Recent developments in the cryptocurrency market are mostly due to Bitcoin and blockchain. The bid behind Bitcoin, as mentioned earlier, is enough to propel other cryptocurrencies.
One of the most interesting news lately is that institutional interest is on the rise for the crypto market. The Greyscale Bitcoin Trust revealed that over twenty institutions invested in the project, with many of them having billions of dollars’ worth of Bitcoin at stake. Goldman Sachs follows on JP Morgan’s steps and prepares to embrace blockchain, while other companies, like Microstrategy, bought over $200 million worth of cryptocurrencies as a bet against inflation.
Therefore, the interest is there, investors are slowly but surely bidding for cryptocurrencies, explaining the bullish price action seen on Ripple price, for example.
A bullish flag is a continuation pattern with a measured move. The price action prior to the flag’s consolidation represents the minimum distance the market should travel after the flag breaks higher. As such, a projection of it from the upper side of the flag leads to a move above 0.4. On such a break, the 0.27 level acts as invalidation for the long trade.
