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- $0.6 offers a strong horizontal resistance
- The bias remains bullish while the market holds above the 2023 lows
- A each day shut above $0.6 ought to set off extra upside
It should have been a irritating second half of the final yr for cryptocurrency traders. As the greenback started to weaken, main inventory market indices bounced.
But the greenback’s weak point was not seen in the cryptocurrency market till the final days of the yr. Moreover, the divergence continued from final October, when the inventory market bottomed, till the final buying and selling days of the yr.
Only in 2023 issues modified. Leading cryptocurrencies rallied, led by Bitcoin.
Some bounced stronger than others. In the case of XRP/USD, it met horizontal resistance at $0.6, a stage that offered help in 2021.
A each day shut above $0.6 could be bullish for XRP/USD
After buying and selling above $1.8 in 2021, when the complete cryptocurrency market rallied, Ripple gave up a huge chunk of its positive factors. On the approach down, the market met help at $0.6 for over a yr.
Eventually, the help gave approach as the bears had been in management.
But now, the similar space that acted as help acts as resistance. In technical phrases, that is known as the interchangeability precept (i.e., help turns into resistance and vice versa).
If the backside carved in the late days of 2023 is right here to remain, then the focus is on the $0.6 space. A each day shut above could be bullish, and the subsequent speedy goal could be $0.8. However, solely a break above parity would shift the bias from bearish to bullish.
All in all, XRP/USD appears constructive right here. As lengthy as the lows maintain, the chances are high that the market is simply constructing power for an additional try at the $0.6 stage.
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