Ripple was previously trading below a descending trend line, but price has recently surged past the resistance to signal a potential reversal. A brief pullback to the trend line could be in order before more buyers sustain the climb.
The 100 SMA is still below the longer-term 200 SMA so the path of least resistance might still be to the downside. However, the gap is narrowing to signal weakening bearish pressure and a potential upward crossover. Once that happens, more bulls could pick up on the rally and push Ripple past the latest highs near 0.1900.
Stochastic is heading down to signal that selling pressure is still in play and that Ripple could retreat from its climb. Similarly, RSI is pointing down to show that buyers might need to take a break and book profits towards the end of the trading week.
Part of the gains in cryptocurrencies lately have been pinned on dollar weakness as the Trump leadership is under fire again. Earlier this week, their fiscal reform agenda hit another roadblock as the Obamacare repeal failed to make it through Senate. Meanwhile, special investigation lead Mueller shared that they are looking into Trump’s previous business dealings to find evidence of highly-classified intelligence information being shared with Russian officials.
This has dealt fresh challenges to the US economy as speculations of impeachment are back in play. The delay in tax cuts could also mean delays in infrastructure spending, which means that the economy has less stimulus to rely on while the Fed moves to tighten and unwind its balance sheet.
In the cryptocurrency industry, news that BIP 91 has been locked in revived confidence that bitcoin could avoid hard fork issues. This led to positive sentiment across the digital currency market and boosted Ripple as well. 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.
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