Ripple Price Analysis: XRP/USD Bullish Momentum Kicking In Again!

8

Ripple was previously trading below a descending trend line on the 1-hour time frame but has since broken higher to signal that a reversal is due. Price hit resistance around .3430 and might be due for a pullback to the broken trend line for a retest.


Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level lines up with this area of interest. A shallow pullback could find support at the 38.2% level around the .3200 mark or the 50% level that lines up with the 200 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Then again, the gap between the moving averages is getting narrow, indicating that a bullish crossover might be in the works.

Stochastic is already in the overbought region, indicating that buyers are feeling exhausted and may be willing to let sellers take over. RSI is starting to make its way back down from the overbought zone to signal that bearish momentum is about to kick in.

XRP/USD Chart - TradingView

However, Ripple is riding on a lot of strong momentum from positive commentary by IMF head Lagarde who cited that fintech could shake things up in the banking sector. She mentioned:

I think in the banking system at large in many, many countries, the difference will not be between those who are disrupted and those who survive… So that’s where I see changes happening now. If you think of Circle, and Ripple and all those – that’s where they are active and helpful.

XRP is also drawing support from news that rival Swift will link to R3’s Corda Settler. This uses a distributed ledger to settle transactions between traditional assets and cryptocurrencies such as XRP.


Images courtesy of TradingView

LEAVE A REPLY

Please enter your comment!
Please enter your name here