Ripple just bounced off its descending trend line connecting the highs so far this month and seems to be setting its sights lower. Applying the Fibonacci extension tool shows the next downside targets from here.
Price is currently stalling around the 38.2% Fibonacci extension level, which lines up with an area of interest. If this holds as support, another test of the descending trend line might take place. However, the 100 SMA is also holding as dynamic resistance, keeping gains in check.
Stochastic is turning lower to indicate that bears are in control of Ripple price action. RSI is also heading south so XRPUSD might follow suit, especially as dollar demand remains supported by Fed rate hike expectations and balance sheet unwinding.
US economic reports came in mixed but could still lend some upside to today’s batch of top-tier data, namely CPI and retail sales. If the results come in strong, Fed rate hike expectations could strengthen even as the central bank is also ready to start its balance sheet runoff later on in the year.
In her testimony, Fed head Yellen clarified that unwinding could put upside pressure on long-term rates and that they would watch the yield curve as part of their consideration in future rate adjustments. She also mentioned that there are upside and downside risks to inflation but that the tight labor market could also put upside pressure on price levels.
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 are able to stay afloat for now after news broke out that a Swiss private bank has included bitcoin in their asset management offerings. This goes without saying that regulators have approved the move, which is a positive sign for bitcoin reputation and market interest.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
