The cryptocurrency market had a difficult time in the last several weeks – it entered the bearish territory, sparked by a move lower in Bitcoin. Other altcoins declined in sympathy with Bitcoin, Ripple being one of them.
But the Ripple price predictions look bullish here, providing the cryptocurrency remains above major support. It is not the first time that it tests this support level, and to be considered out of the woods, Ripple should move above $1.
Dynamic levels offer stronger support and resistance, especially when forming on large timeframes like the daily one seen below. The price has reacted from dynamic resistance twice before breaking higher, and now that resistance turned into support.
The technical picture favors the bullish case. But before going long, traders should wait for the price action to break the series of lower highs that belongs to the previous bearish trend. Also, another thing to do is to simply watch Bitcoin and monitor the price action there for a bullish reversal. The two cryptocurrencies have rarely diverged in the past, and Bitcoin has almost always led the way.
Bulls may want to wait for the price action to move above $1 before going long with a stop at 0.8 and a take profit above $1.6.
Follow Mircea on Twitter.
