Ripple Technical Analysis for 06/30/2017 – Short-Term Channel Bounce

Ripple continues to trend lower and is moving inside a descending channel visible on its 1-hour time frame. Price is bouncing off the resistance, which lines up with the 200 SMA dynamic inflection point and the 61.8% Fibonacci retracement level.

This area also lines up with a former support zone, adding to its strength as a ceiling. The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. However, the 100 SMA appears to be holding as near-term support for the time being. A break below this area would reflect a pickup in downside momentum.

Stochastic is pulling up from the oversold area, though, signaling that buyers are regaining control of price action while sellers take a break or book profits. Similarly, RSI is pointing up so Ripple price action might follow suit. In that case, an upside break of the channel resistance around 0.2700 could be possible.

If that happens, Ripple could start a reversal from its downtrend and go for the next resistance at 0.3000. On the other hand, if the selloff continues, a move towards the swing low at 0.2120 could take place or a drop to the channel support closer to 0.2000 could be in the cards.

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 have rebounded in recent trading sessions as traders appear to be booking profits ahead of the end of the month and quarter. However, the downtrend could remain intact as risk appetite is in play owing to the shift to a more optimistic stance by most central bank officials.

Dollar demand remains weak, though, as traders continue to doubt that the Trump administration could push its reform agenda before the end of the year. With that, higher-yielding cryptocurrencies like Ripple could be poised to take advantage.