Ripple (XRPUSD) Technical Analysis: Descending Triangle Consolidation

Ripple has formed lower highs and found support at 0.4460 to create a descending triangle pattern on the 1-hour time frame. Price recently bounced off the resistance and is heading back down for another test of support.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that resistance is more likely to hold than to break. This also suggests that support might be more likely to break than to hold, possibly sending Ripple lower by the same height as the chart formation.

Stochastic is hovering around the oversold region and slowly pulling up to suggest a return in bullish momentum. RSI has some room to head lower, though, so bears could still have the upper hand.

Ripple traders might be holding out for more updates before sustaining any strong rallies as there is still a lot of uncertainty weighing on the industry. Still, there’s a lot to look forward to for Ripple as it was revealed that banks and institutions using xCurrent might be looking to upgrade to xRapid.

According The Banker’s article interview with Ripple’s senior vice president of product management Asheesh Birla:

“xRapid is seeing greater traction among payment providers, including Currencies Direct, Mercury FX and Viamericas, whereas the banks are not quite ready to take the plunge into the nascent cryptocurrency space. However, Mr Birla reports that some banks using xCurrent are now looking to use xRapid for the second phase of their projects…”

Furthermore Birla mentioned:

“To deploy something for Standard Chartered, Santander or Bank of America, our solution needs to scale to hundreds of thousands of transactions per second – this was in the design from the outset.”

xRapid uses XRP itself to settle cross-border payments between counterparties at almost real-time and at low transaction costs.

 

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