Ripple has formed lower highs and higher lows, creating a symmetrical triangle visible on its 4-hour time frame. Price is now testing resistance and looks ready for a move back down to support at 0.2500.
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. In other words, the resistance is more likely to hold than to break.
Also, stochastic is turning down from the overbought zone to indicate that buyers are taking a break and sellers are regaining control of Ripple price action. RSI is also heading south so Ripple might follow suit.
Stronger selling pressure could even lead to a break below the triangle support and a longer-term drop. Note that the triangle spans 0.1500 to 0.3500 so the resulting selloff could be of the same size. Similarly, an upside break from resistance could lead a rally of the same amount.
Ripple is focused on building a better bitcoin as it wants to handle transaction volume on a higher scale. With that, more issues popping up in the bitcoin network could actually prove to be bullish for XRPUSD as traders seek alternative cryptocurrencies to profit from.
The company approaches banks with its enterprise software, along with the Interledger Protocol. They propose a corresponding banking paradigm in which banks with no direct relationship rely on intermediaries in order to send payments to each other.
Dollar has gained a bit of traction against cryptocurrencies, though, when FOMC member gave hawkish remarks in his latest testimony. However, other Fed policymakers didn’t sound so upbeat so the currency could return some of its recent gains soon.
Besides, risk aversion seems to be returning to financial markets as US equities are tumbling again and commodities aren’t faring so well. In particular, crude oil has taken a huge hit on rising production in Libya, which is exempted from the OPEC deal. Falling energy prices could take its toll on global stock markets down the line so traders might be interested to put funds in alternative holdings like bitcoin and Ripple.
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