Ripple is still trending lower inside a long-term descending channel but has just bounced off the mid-channel area of interest. In addition, price has broken above a short-term descending trend line to signal that buyers are taking over.
The 100 SMA is still below the longer-term 200 SMA, though, indicating that the path of least resistance is to the downside. In other words, the downtrend is more likely to gain traction than to reverse. However, price is trading above the 100 SMA as an early indication of bullish pressure and is poised to test the 200 SMA next.
Stochastic is pointing up to confirm that buyers are in control of the game, but the oscillator is nearing the overbought zone to reflect exhaustion. Turning back down could bring selling pressure in and lead to a dip back to the nearby support zones. These would be around the broken falling trend line and the mid-channel area of interest. Sustained bearish pressure could take price to the very bottom of the channel.
RSI is already in the overbought territory to indicate that buyers need to take a break and may let sellers take over.
Cryptocurrencies staged a pretty strong rebound over the past few hours, possibly buoyed by the overall pickup in risk sentiment. This was seen to have been spurred by the FOMC decision that indicated room for being more patient when it comes to future tightening.
Apart from that, news that Fidelity is set to launch its institutional platform in March is also giving crypto traders hope. This could usher in strong volumes from banks and funds that might lift altcoin prices overall.
As for Ripple, the IMF itself had positive things to say about this particular digital asset, with Lagarde citing that “fintech is going to shake the system.”