Ripple Technical Analysis for 08/08/2017 – Resistance Turned Support

Ripple has formed higher highs and higher lows, creating an ascending channel formation on its 1-hour time frame. Price is currently testing support, which lines up with a former resistance level and is holding as an area of interest.

The bottom of the ascending channel also coincides with the 100 SMA dynamic inflection point, adding to its strength as a floor. A larger dip could last until the 200 SMA at 0.1750 and a break below this area could mean the start of a downtrend. The 100 SMA is still safely above the longer-term 200 SMA, though, so the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse.

Stochastic appears to be pulling up without even hitting oversold conditions, signaling that buyers are eager to get back in the game. RSI is also starting to turn higher to reflect stronger buying pressure. In that case, Ripple could find its way back to the channel resistance at 0.1950 and beyond.

Although sentiment in the cryptocurrency industry has improved in the days following bitcoin’s hard fork, dollar demand has taken its toll on other digital assets like Ripple and ethereum. Stronger than expected July NFP data revived September rate hike hopes even as policymakers remain worried about inflation and are urging to start the balance sheet runoff. Also, US equities have been on the rise and the fact that Trump is on vacation has reduced political issues, lending more support for the dollar across the board.

Ripple has also tumbled as bitcoin investors renewed their long positions. There have been no major incompatibility issues reported and the fact that the network can now handle more transactions than before has drawn more attention to bitcoin once more.

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.