Ripple is still trending lower and appears to have completed a correction to its descending trend line on the 1-hour chart. Price is bouncing off the resistance already as this lines up with a short-term area of interest.
Sustained bearish momentum could take it down to the swing low at 0.1480 or until the next Fibonacci extension levels. The 50% extension is at 0.1442, the 61.8% extension is at 0.1405, the 76.4% extension is at 0.1360 and the full extension is at 0.1286.
The 100 SMA is below the longer-term 200 SMA so the path of least resistance is to the downside. In addition, the 100 SMA lines up with the descending trend line resistance, adding to its strength as a ceiling. The gap between the two moving averages is widening to reflect stronger bearish momentum.
Stochastic also seems to be turning lower without even hitting the overbought zone. This indicates that sellers are eager to get back in the game and push Ripple back down. RSI is also heading south so Ripple might follow suit.
Cryptocurrencies are hardly able to take advantage of the pickup in risk aversion as bitcoin has been hogging most of the gains. The network upgrade has paved the way for stronger investor interest and more bitcoin-related securities being created, thereby increasing trading activity 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. They propose a corresponding banking paradigm in which banks with no direct relationship rely on intermediaries in order to send payments to each other.
The dollar is also currently being weighed down by political troubles following the response of Trump to the violence in Charlottesville. World leaders, senior government officials, and even members of the GOP have been distancing themselves from the President, casting more doubts that the fiscal reform agenda and tax cuts could be pushed smoothly.
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