- Summary:
- Ripple price dragged lower by weak Bitcoin price action. Looking for the correlation with Bitcoin to dominate the price action on Ripple moving forward.
Ripple price comes down from the 0.32 area where it put a double top, and more downside looks possible. The cryptocurrency failed twice at 0.32 as Bitcoin reversed from the $12,000. The strong correlation between Bitcoin and altcoins remains, making Bitcoin the main driver that influences the ripple price’s movement.
The recent move lower is due to a higher USD. As the dollar reversed across the dashboard, it gained against alternative investments too. Therefore, it gained against Bitcoin, and that dragged the ripple price lower too.
Bulls see any drop in the cryptocurrencies as an opportunity to go long. For instance, a quick look at the Bitcoin long-term charts reveal that the 200-week moving average sits at $6,600 and rises with about $200 every month. Why is this relevant?
Bitcoin monthly close has never been below the 200-week moving average, fueling expectations that technical traders will jump on the long side every time the price comes closer to it. Hence, any drop on Bitcoin towards the $7,000 is likely to trigger buying signals for bulls and, as a consequence, a bullish opportunity for ripple price appears.
However, Bitcoin has never been correlated with broad USD movement like it is nowadays. Hence, the new correlation may be responsible for a different reaction if and when the price reaches the average.
Ripple Price Technical Analysis
From a technical perspective, ripple price remains vulnerable to more downside. The double top at the 0.32 level marks an area difficult to break.
For as long as the series of lower highs remains in place, the bearish sentiment will dominate. Bears would want to stay on the short side, keeping an eye on the Bitcoin price. When Bitcoin reaches support, the ripple price will likely reach support too. That should be the exit for bears, and the focus shifts to any possible reversal pattern. Until then, bearish conditions are likely to dominate the price action.
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Ripple Price Forecast
