Ripple has formed lower highs and higher lows, creating a symmetrical triangle formation on its 4-hour time frame. Price bounced off the support and is currently testing the resistance but could be due for a breakout in either direction soon.
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. In other words, a move lower could be more likely to happen than a break higher. Also, the 100 SMA is close to the top of the triangle while the 200 SMA dynamic inflection point also adds an extra layer of resistance.
The chart pattern spans 0.1300 to 0.2000 so the resulting downside break could lead to a drop of 0.0700 while an upside break could spur a climb of 0.0700 or the same height as the triangle formation. RSI is on the move up to show that there’s some bullish pressure in play while stochastic seems to be headed higher as well. However, both oscillators are closing in on the overbought zone to signal rally exhaustion and a potential return in selling pressure.
Dollar demand could stay supported as the NFP draws near. The ADP report is due ahead, though, and this might indicate a weaker pace of hiring growth in July compared to June. The ISM manufacturing PMI jobs component also reflected a slight dip in employment for the month but an upside surprise in the official government data could give the dollar a boost.
In the cryptocurrency industry, bitcoin has entered a hard fork in which two versions of the software exist. As such, many are worried about potential incompatibility issues, although only a few exchanges support the newer clone version. In any case, this still allows the network to handle more transactions as the main one upgraded to SegWit2x.
Ripple has managed to take advantage of the dip in bitcoin interest as it offers a potentially more stable alternative. 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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