The cryptocurrency market’s growing momentum points to another leg higher. Bitcoin leads the price action in other altcoins, and thus the Ripple price action is poised to follow its lead.
Bitcoin reached $60k recently before correcting, and many said that the cryptocurrency has formed a major top. However, the price action remains bullish as the market keeps finding buyers at the lows – the same is seen on the Ripple price.
Increased adoption by institutional investors makes digital assets an attractive investment that diverges from the main trends seen in other markets. For example, while the price action in the Bitcoin and Ripple markets is constructive, bullish, the dollar is gaining strength against the euro and other fiat currencies.
Ripple bounced strongly from the 2021 lows and now forms a pennant formation. A break above the upper trendline points to more strength as pointed by the measured move.
Bulls may want to wait for the market to break the pennant before going long with a stop at the previous higher low. Next, aggressive bulls may want to add to the position once the price action clears the major resistance area at 0.65. As for the target, a risk-reward ratio of 1:2 or more should help finding the best exit level.
