Ripple continues to trend lower on its 4-hour chart and is in the middle of a pullback to the channel resistance and area of interest. If it keeps gains in check, price can drop back to support at the swing low at 0.1300 or to new lows at the channel support closer to 0.1200.
Applying the Fibonacci retracement tool on the latest swing high and low on the 4-hour chart shows that the 50% level lines up with a former support area and that the 61.8% level lines up with the channel resistance. The latter could be the last line of defense in this correction move as a break past that area could mark the return of buying pressure.
Stochastic is climbing to indicate that buyers are still in control of Ripple price action. However, the oscillator is already dipping into the overbought zone to signal rally exhaustion. If bulls book profits and bears take over, the downtrend could resume. Stronger bearish pressure could even lead to a break below the channel support and the start of a steeper selloff.
RSI is still halfway through on its climb to the overbought levels so there’s room to head further north for Ripple price. 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.
Dollar demand has weakened in the past few days as more and more traders keep doubting that the Fed can be able to hike rates by September or even in December. For one, CPI and retail sales have missed expectations, so there’s evidence that the slump in price levels is as transitory as policymakers assessed.
Apart from that, the Fed is also planning on unwinding its balance sheet holdings later this year and Chairperson Yellen admitted that this would impact the yield curve, possibly giving them another reason to hold off further tightening moves.