FX.co ★ Altcoins: Ripple breaks out of consolidation

Ripple, which for two days consolidated in the middle of the side range of 0.3512 - 0.4348 below the level of 0.3914, finally broke through. Today, XRPUSD quotes have consolidated above the level of 0.4348, creating a prerequisite for possible further strengthening.

Therefore, the horizontal of 0.4348 is a strong mirror level, now working as a support. The attempt to pierce it with a shadow is another confirmation of its power. The question is whether it is possible to open purchases now and for what purpose.

The price on the hourly chart rolled back down after the breakdown, but until it bounces off the horizontal and only consolidates above it, there is no final confidence that the support will stand. This year, Ripple has been correlated with bitcoin, ergo there is little hope that the growth of the main cryptocurrency will support it.

Against this background, an aggressive entry into purchases with the removal of a stop loss under the shadow can be attempted, but there is a high risk that the horizontal will be tested again and update the minimum breakdown, as was the case with Litecoin.

The second option is to expect a clear rebound up, a rise in the price above the current consolidation area. As a target for growth, we should consider the maximum of the long shadow from January 30 - the local level of 0.5110 (red dotted line). And as the price approaches yesterday's high, move the stop loss to breakeven.