Ripple is still trading within its ascending channel visible on the 1-hour chart but seems to be breaking below support. Price already breached the 100 SMA dynamic inflection point and is on its way to test the line in the sand at the 200 SMA.
The 100 SMA is still above the longer-term 200 SMA so the path of least resistance is to the upside. This means that the uptrend is more likely to continue than to reverse. However, a break below the nearby 200 SMA could attract more bearish momentum and lead to a downward crossover for the moving averages, which would be an early signal of a trend reversal.
Stochastic is still pointing down to indicate that sellers are on top of their game, but the oscillator is already dipping into the oversold region to signal slowing bearish momentum. RSI is still heading south so Ripple might follow suit.
Cryptocurrency enthusiasts are flocking back to bitcoin as this has managed to survive a hard fork and a network upgrade which allows it to handle more transactions than before. This could boost its usage among firms and exchanges, which could keep investor interest supported.
The company behind Ripple is focused on building a better bitcoin as it wants to handle transaction volume on a higher scale. 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.
Meanwhile, the US dollar is also benefitting from its safe-haven appeal thanks to geopolitical risks from North Korea. The hermit nation has threatened to launch a simultaneous missile firing on Guam and the Trump administration seems to be provoking Pyongyang.
Worsening tensions could mean more flight to safety, which would strongly benefit the lower-yielding US dollar. Then again, cryptocurrencies have shown a tendency to draw more demand from investors seeking higher returns out of stocks and commodities during risk-off situations.
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