Ripple is still trending lower after the upside break past the channel resistance proved to be a fake out. Price dropped right back to the bottom of the channel, which held as support and allowed a long spike to form on a bounce.
Price could head back up to the resistance from here before resuming the slide. Ripple is still moving below the 100 SMA on the 4-hour time frame so the path of least resistance is to the downside. In addition, the 100 SMA could hold as dynamic resistance in the event of a larger pullback past the 0.2600 mark.
Stochastic is still heading lower but is already closing in on the oversold region, which means that sellers might want to take a break soon and let buyers take over.
Similarly, RSI is heading south so Ripple might follow suit but this oscillator is closing in on the oversold area as well. A stronger return in bullish momentum could lead to another upside break past the channel resistance that could be sustained on an uptrend.
However, dollar demand is particularly strong recently as the FOMC statement indicated that the Fed can keep up its pace of three interest rate hikes this year. To back this up, central bank officials upgraded growth and jobs forecasts while downgrading inflation estimates.
The Fed also shared its plan on unwinding its balance sheet, which also has a similar effect to monetary policy tightening as it would mop up excess liquidity in the markets. Economic data has been mixed but policymakers have already maintained that any slowdown is transitory and that a strong rebound is due soon.
Cryptocurrencies have also had a rough day as cyberattacks on a couple of major bitcoin exchanges have cast doubts into security and stability, leading investors to book profits off their long positions. Keep in mind, though, that the National Bank of Abu Dhabi has invested in Ripple so this should help keep prices afloat.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
