Ripple continues to trend lower and is trading inside a descending channel on its 1-hour time frame. Price is bouncing off support and might be ready to test the resistance around 0.2700.
Price previously broke below a triangle consolidation pattern, signaling that bears are gaining the upper hand on Ripple price action. However, stochastic is pulling up from the oversold area to signal that sellers are taking a break while letting buyers take over.
A pullback to the channel resistance lines up with an area of interest or former support, which might keep gains in check. This also lines up with the moving averages dynamic inflection points. Speaking of moving averages, the 100 SMA is below the longer-term 200 SMA on the 1-hour chart, indicating that the path of least resistance is to the downside.
RSI is trending sideways, though, suggesting that a bit more consolidation could be seen. However, it also seems to be pointing down to suggest that sellers are eager to get back in the game. In that case, a break below the channel support at the 0.2100 area could be possible, taking Ripple on a steeper selloff to 0.2000 or lower.
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.
Cryptocurrencies haven’t been faring so well in the past few days as risk appetite is present in global financial markets. This means less demand for these alternative safe-havens, which offer investors higher returns compared to traditional holdings like stocks and commodities.
But with central bankers expressing optimism for their economies and signaling potential for tightening, risk-taking is seen in the global markets, especially since Italian banks have gotten support from the government and Brexit negotiations appear to have no glitches so far.
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