XRP has formed lower highs and higher lows to trade inside a symmetrical triangle on its 1-hour time frame. Price is bouncing off the top and might be due for a dip to the support area.
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, resistance is more likely to hold than to break. In addition, the 200 SMA dynamic inflection point lines up with the triangle resistance to add to its strength as a ceiling.
Support might also be more likely to break than to hold, sending XRP lower by the same height as the triangle pattern. This formation spans 0.3200 to around 0.3450.
RSI is treading sideways but could be due to head south as it appears to have already topped out near the overbought zone. Stochastic is already moving lower so XRP could follow suit while sellers have the upper hand.
Along with most of its cryptocurrency peers, XRP is also treading mostly sideways while waiting for a catalyst that could push it in a specific direction.
Ripple developments have actually been positive, though, as Mercury FX reported via its Twitter account that the transaction conducted through RippleNet had a positive outcome. The company announced:
We’ve made our largest payments across RippleNet using #XRP – 86,633.00 pesos (£3,521.67) from the U.K. to Mexico in seconds.
The company has also added 13 new financial institutions on RippleNet, bringing the overall number of global customers to over 200 across 40 countries. As CEO Brad Garlinghouse mentioned:
By the end of next year , I would certainly hope that we will see…in the order of magnitude…of dozens. But we also need to continue to grow that ecosystem…grow the liquidity.
For now, though, traders might be holding out for more headlines that could turn the tide for the industry and bring risk appetite back in the markets.
Images courtesy of TradingView