Ripple is still trying to decide where to head next as price is consolidating in a symmetrical triangle. Price just bounced off support and could be due for a test of the resistance at 0.1800 soon.
Price is also finding resistance at the 100 SMA dynamic inflection point for the time being, and if this continues to keep gains in check, XRPUSD could attempt to break below support. An upside break from resistance could find a ceiling at the 200 SMA dynamic inflection point or the descending trend line around 0.2100.
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. In other words, the selloff is more likely to carry on than to reverse. Stochastic is already indicating overbought conditions to show that buyers are exhausted but has yet to turn lower to reflect a pickup in bearish pressure.
RSI is still on the move up so there may be some bullish pressure left. However, once the oscillator hits the overbought level and turns lower, selling momentum could be strong enough to trigger a break of the triangle support then a test of the lows around 0.1500.
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.
However, dollar demand has also been a huge factor in cryptocurrency action lately. Traders are warming up to the idea that the central bank is ready to unwind its balance sheet and hike rates one more time, both of which would be positive for the US currency.
At the same time, a shift to less dovish central bank biases also marks the end of the easy monetary policy era, which could convince traders to book profits off their risky investments as well.
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