RIPPLE SURGES AS OTHER CRYPTOCURRENCIES STRUGGLE
On Thursday, all the major cryptocurrencies slumped following reports that South Korea was planning a crackdown on exchanges.
Ripple was an outlier with its price surging by more than 20% to reach an all-time high of $1.39 wherein it officially became the third largest cryptocurrency in the market.
Bitcoin dropped by 8%, Ethereum by 4% and Litecoin by 11%.
Ripple’s gain was attributed to the news from Japan where SBI Ripple Asia created a consortium to bring Ripple’s blockchain technology to the Japanese market. In the past, Japanese banks have supported technology that speeds up money transfers.
In this chart, yesterday, Ripple’s surge led to a breakout of the previously formed near-perfect horizontal support and resistance pattern (shown in red lines).
After the breakout, the price established a new support and resistance level at $1.3504 and $1.3948. Traders may expect the price to touch the psychologically important level of $1.4000 before seeing a significant correction, which could take the price back to the $1.3504 level.