Ripple Technical Analysis for 06/23/2017 – Area of Interest Holding

Ripple is stalling at its current levels, which is actually an area of interest visible on the short-term time frames. Applying the Fib tool on the latest swing low and high shows that the 50% retracement level has already held as support.

If it keeps doing so, Ripple could make its way back up to the swing high around the 0.3200 level. The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. In other words, the climb is more likely to resume than to reverse.

In addition, the 200 SMA lines up with the 50% Fib while the 100 SMA is closer to the 38.2% Fib, adding strength to support. Still, a deeper pullback could find support at the 61.8% Fib just above the 0.2400 mark.

Stochastic is already pointing up to show that buyers are in control of price action. RSI is also on the move up so Ripple might follow suit. Stronger bullish momentum could even take Ripple past the swing high but both oscillators are also nearing overbought levels to reflect rally exhaustion.

Cryptocurrencies have gotten a boost lately as some degree of risk aversion remains in several markets like in Europe and among commodities. This shores up demand for alternative assets with higher returns like bitcoin or Ripple. Also, it’s worth noting that ether suffered a flash crash in GDAX so traders must’ve transferred their holdings to other virtual currencies.

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.

As for the dollar, the US currency is still holding on to most of its recent gains as traders are looking forward to fiscal reform from the Trump administration and to another rate hike from the Fed later this year. However, policymakers have hinted that they could start unwinding balance sheet holdings by September, which might push back rate hike prospects to December.