Ripple (XRPUSD) Technical Analysis: Bullish Break and Pullback

Ripple broke to the upside of its symmetrical triangle formation previously highlighted and hit resistance around .3500. A pullback is currently underway and price might be due to test the next Fib levels.

The 61.8% level is close to the broken triangle top around .3200, which might hold as support moving forward. If so, XRP could resume the climb to the swing high and beyond. Note that the triangle spans .2900 to around .3300 so the resulting climb could be of at least the same size.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the climb is more likely to gain traction than to reverse Price seems to be testing the dynamic support at the 100 SMA dynamic inflection point but could still dip as low as the 200 SMA just below the broken triangle top.

RSI is heading south to signal that there is stillĀ  some bearish momentum in play. The oscillator has a bit of room to go before reaching the oversold region to signal exhaustion among sellers. Stochastic, on the other hand, is already turning higher to indicate that buyers are ready to jump back in.

XRP was a bit behind in the rallies but it still managed to join its peers in the positive run, although its pullback was just as quick. News that JPMorgan is launching its own coin may have spooked investors a bit since this would rival XRP’s payment platforms.

Last week, it was reported that the financial institution which moves around $6 trillion a day was designing a cryptocurrency to improve the efficiency of client transactions called JPMCoin. However, this might not be in direct competition to XRP since it would be a stablecoin pegged to the value of the US dollar.

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