Ripple seems done with its selloff as price busted through its descending channel resistance on the 1-hour chart. This suggests that the longer-term rally earlier on might be ready to resume.
Price is also trading above a short-term rising trend line and might be due for a pullback to this support area, which lines up with the broken channel top. The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse. These moving averages are also near the area of interest at .4600.
Stochastic is turning lower even without hitting overbought levels to signal that sellers are eager to return. RSI is also pointing down to reflect a return in bearish pressure. However, this could just mean that a pullback from the break higher is in order. If support at the trend line holds, Ripple could bounce back to the swing high and beyond.
Cryptocurrencies are starting the month off on positive footing, likely on renewed optimism amid developments in the industry. Ripple continues to make progress and traders are looking forward to a surge in XRP activity once the company’s partners under xCurrent shift to xRapid.
According to Ripple’s Cory Johnson in a podcast interview:
“The technology for XRP is like Bitcoin 2.0. It’s Bitcoin, but it’s faster. It’s Bitcoin, but it doesn’t use tons of power. It’s Bitcoin, but it’s not controlled by Chinese miners. But fundamentally, it is a blockchain digital asset that is used principally for the movement of value.”
Furthermore, he explained:
“If we were to lower the cost of certain competitors in the financial service industry, everyone else in the financial services industry is going to want to understand that. And so we have a role to try to explain that and explain what we’re doing and try to make sure people know what Ripple is and what we’re trying to do as a company.”