Ripple Technical Analysis for 07/04/2017 – Another Bounce to Triangle Top

Ripple is still trading inside its symmetrical triangle consolidation pattern visible on the 4-hour time frame. Price has bounced off support and could be due for a test of resistance around 0.2800.

The 100 SMA is below the longer-term 200 SMA, though, so the path of least resistance is to the downside. This means that a break of support could be possible, especially if the moving averages continue to hold as dynamic resistance. Note that the triangle formation spans 0.1400 to 0.3600 so the resulting breakout move could be of the same size.

Stochastic is turning down from the overbought region to indicate a return in selling pressure. RSI, however, is heading up so Ripple might still follow suit. Keep in mind that price barely made it back up to the top of the triangle on the latest test of support, indicating that bears are putting up a stronger fight.

Dollar strength could be making it difficult for Ripple to advance as the stronger than expected ISM manufacturing PMI spurred expectations of an upbeat June NFP report and therefore another rate hike from the Fed sooner rather than later. US traders are out on a Fourth of July holiday today so liquidity could be thin and further consolidation likely.

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.

Moving forward, Ripple price action could hinge mostly on cryptocurrency industry updates and market sentiment. For now, it looks like traders are treading carefully since it’s just the start of the new quarter and a number of market factors could still come into play. More positive updates from the industry could lead to another wave higher for digital currencies but the lack of news could keep sideways price action carrying on.