Ripple appears to have completed its correction to the area of interest at the .2000 mark and is setting its sights on the next resistance levels. Applying the Fib extension tool on the pullback move shows how high price could go.
Price seems to have bounced off the 38.2% extension at the 0.2500 mark but technical indicators are suggesting that further gains are in the cards. The 50% extension is located at the 0.2700 level then the 61.8% extension is at 0.2885. A larger rally could last until the 76.4% extension at 0.3100 then to the full extension close to 0.3500.
The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside. The upward crossover just occurred but the gap between the moving averages already seems to be widening to reflect strengthening bullish momentum. These moving averages are also in line with the latest pullback and area of interest, adding to its strength as support in the event of another retest.
Stochastic has pulled up from the oversold region to reflect a return in bullish pressure. However, RSI appears ready to turn lower once more, possibly drawing more sellers to the mix. A break below the 0.2000 mark could still leave the door open for a price drop to the next support at 0.1500.
Cryptocurrency demand has picked up following the recent North Korean missile launch but profit-taking quickly occurred as fears faded. Provocation from either the US or Pyongyang could revive risk-off moves and lead to more gains for Ripple.
Also, the dollar is being weighed down by these nuclear strike threats, political troubles, and expectations of a weak NFP. If Friday jobs report disappoints, Fed rate hike expectations could be chucked out the window, giving Ripple another shot at advancing against the dollar. On the other hand, significantly upbeat data could revive September tightening forecasts and lead to a strong dollar rally.
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