Ripple is still stuck in a short-term consolidation pattern, creating a descending triangle pattern on its 1-hour chart. Price is at the peak of the formation so a breakout could happen anytime soon.
A downside break could mark the start of a longer-term selloff while a break to the upside could confirm that the uptrend is about to resume. resistance is at 0.1915 and support is at 0.1900.
Ripple is also testing support at the rising trend line, which lines up with the 100 SMA dynamic inflection point. This support level also lines up with an area of interest or former resistance.
Speaking of moving averages, the 100 SMA is above the 200 SMA so the path of least resistance is to the upside. The gap between the moving averages is getting wider, which means that bullish pressure could get stronger.
Stochastic is on the move down to show that selling pressure is in play. In that case, Ripple could still break below support then test the floor at the 200 SMA or the 0.1800 mark. A break below this level would add confirmation that the downtrend is getting stronger. RSI is treading sideways to show that consolidation could continue.
Sentiment for cryptocurrencies improved last week when BIP 91 was locked in for bitcoin, easing hard fork concerns and providing a template that other digital assets might follow once they reach the same juncture. However, the US dollar is also putting up a strong fight and additional volatility could come in during the FOMC decision.
No actual rate hikes are expected this month but traders are eager to find out if the central bank would maintain its optimistic view on account of weaker than expected CPI and retail sales for June. Policymakers have been insisting that the weakness is temporary but admitting that performance is slowing could dampen hopes of a rate hike in September or December.
Traders are also waiting to see if the Fed would provide more details on the timing of their balance sheet runoff. Indications that they would start in September would also weigh on rate hike hopes for that month and possibly dollar gains.
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