Ripple continues to consolidate for the nth day in a row as traders keep holding out for big market catalysts. Price seems to be forming a small head and shoulders pattern on its 15-minute chart and could be due for a break of the neckline.
If so, Ripple could sell off by 0.0100 points or the same height as the reversal pattern. The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. A stronger selloff could last until the 0.2300 support level.
Stochastic is turning lower to signal that sellers are taking control of price action. Meanwhile, RSI is treading sideways to show that further consolidation could take place.
Zooming out to longer-term charts shows further consolidation as price has been bouncing off support and resistance on symmetrical triangles. This indicates a tight battle between bulls and bears, and a breakout in either direction would confirm that one side is winning out.
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.
The lack of major headlines from the industry itself could leave Ripple price sensitive to dollar movements. Earlier this week, the FOMC minutes revealed that Fed members were still undecided on the timing of their balance sheet reinvestment and also on the next interest rate hike. Traders could now turn their attention to Friday’s NFP release to gauge how hawkish the central bank could get.
Leading indicators have been hinting at a potential upside surprise in the jobs report, although the ADP non-farm employment change reading and the ISM non-manufacturing PMI have yet to be released. Strong results from these could spur positive expectations for the June NFP and also for the Fed’s next rate hike.
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