Cryptos are in a consolidation phase following a short downtrend. They are all following roughly the same path, but Ripple seems to be leading the way. This means Ripple's price action can be used to anticipate price action on other currencies. For example, Bitcoin and Ethereum are yet to break out of their consolidation zones yet. On those charts, we're still waiting to see whether they will break to the upside or downside. Ripple however, has already broken to the upside, shown in the pink circle. This is a convincing breakout because it occurred on a strong bullish candlestick on high volume (over 7 times 20 hour moving average).
Breaking out of the consolidation zone may signal the beginning of a new trend phase. Ripple is indicating that this will be an uptrend. If this remains the case, other cryptos will probably soon follow.
The greatest risk here is that this is a 'fakeout' on Ripple. This is unlikely because of the apparent strength in price and volume action around the breakout. That being said, the next potential resistance to watch is the 50% retracement level which also coincides with the psychologically significant round 0.27 level. Price behaviour around this level, if reached, could be insightful for forecasting the immediate sentiment around Ripple and other cryptocurrencies more generally.
Breaking out of the consolidation zone may signal the beginning of a new trend phase. Ripple is indicating that this will be an uptrend. If this remains the case, other cryptos will probably soon follow.
The greatest risk here is that this is a 'fakeout' on Ripple. This is unlikely because of the apparent strength in price and volume action around the breakout. That being said, the next potential resistance to watch is the 50% retracement level which also coincides with the psychologically significant round 0.27 level. Price behaviour around this level, if reached, could be insightful for forecasting the immediate sentiment around Ripple and other cryptocurrencies more generally.