Ripple is forming an ascending trend channel with its higher lows and higher highs. Price just bounced off the resistance and looks prime for a test of support.
Applying the Fib retracement tool on the latest swing low and high shows that the 61.8% level is closest to the channel support around .4900. This is also in line with the 100 SMA dynamic inflection point, which could add to its strength as a floor.
On the subject of moving averages, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. The 200 SMA is also near the bottom of the channel at the .4800 mark and might also serve as another barrier.
Stochastic is pointing down, though, indicating that selling pressure is present. This could keep the correction going for a bit longer before oversold conditions are seen and buyers take over. RSI is also moving south so XRP could follow suit while buyers wait to return at better levels.
Cryptocurrencies have been on more solid footing recently as upside breakouts were seen while optimism ticked higher to start the month. This was also supported by a Morgan Stanley report that signaled a bullish outlook for the year on account of rising institutional interest.
Ripple, in particular, has the xRapid platform to benefit from. The company’s banking and financial institution partners already using the xCurrent messaging platform are expected to transition to actually using XRP under xRapid to settle cross-border payments at some point.
On the retail side of things, there are rumors that Coinbase is looking to list XRP, but this might hinge on whether or not it can be treated as a security.