Ripple has once again formed higher lows and lower highs to consolidate inside a symmetrical triangle pattern on its 1-hour chart. Price is testing the top but also nearing the peak of the formation, so a breakout could be due soon.
But which direction might it go? The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside or that support is more likely to break than to hold. In that case, XRP could slump by around the same height as the pattern, which spans 0.3200 to 0.3450.
Then again, the gap between the moving averages is narrowing to reflect slowing bearish pressure. If a bullish crossover follows, price could be poised to break past the triangle top that lines up with the 200 SMA dynamic inflection point. In that case, XRP could climb by the same size as the triangle.
RSI appears to be on the move down even without reaching overbought levels, which suggests that sellers are eager to return. Stochastic is also moving south to confirm that bears have the upper hand. Still, price could keep bouncing back and forth between the triangle support and resistance until a catalyst pushes it in a strong direction.
One of Ripple’s partners, Mercury FX, recently announced on Twitter that they transacted their largest payment across RippleNet with a positive outcome. The company transferred £3,521.67 or $4,552.41 and mentioned that UK-based Mustard Foods was able to save £79.17 and 31 hours on the transaction.
This showcases the potential of Ripple to benefit both parties involved in the transaction through speedy execution and lower costs. However, it appears that the slump that is weighing on the cryptocurrency market, along with the uncertainty in global financial markets, is more strongly in play this week.