Ripple could be due for a reversal from its slide as it starts to break above a descending trend line on the 1-hour time frame. However, the price is still stuck in a short-term symmetrical triangle pattern.
A break above this consolidation could be stronger confirmation that an uptrend is due, possibly lasting by at least the same height as the triangle pattern. Price would also need to close past the 200 SMA dynamic inflection point to confirm that bullish momentum is picking up.
On the subject of moving averages, the 100 SMA is below the longer-term 200 SMA to suggest that the path of least resistance is to the downside. In other words, the downtrend still has a stronger chance of resuming than reversing. Then again, the gap between the moving averages has narrowed to reflect slower selling pressure.
RSI is heading lower and has some ground to cover before indicating oversold conditions. Once it does, sellers could take a break and allow buyers to take over, letting the reversal gain traction. Stochastic has already dipped into the oversold region and turning higher could reflect a return in bullish pressure.
Traders appear to be holding out for the official listing of Coinbase for Ripple, and this widely expected to be a catalyst for a reversal from the downtrend. However, the exchange seems to be taking its time and might wait for the federal court case to be concluded before anything else.
If the SEC rules that Ripple is a security, analysts warn that this could have repercussions on institutions and consumers. Still, Ripple CTO David Schwartz highlighted how the company’s products like xCurrent and xRapid could change the game. Furthermore, he reiterated how their focus is addressing the problem of payments and cross-border payments in particular.
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