Ripple continues to move south with lower highs and lower lows in a descending channel on its 1-hour chart. This comes after a strong upside break from a long-term falling trend line, suggesting that a reversal was due.
However, bearish pressure refuses to let up as price has been unable to sustain the climb. The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.
These moving averages are also close to the channel resistance to add to its strength as a ceiling. These are just above the 61.8% Fib and former support around the .4600 mark as well, which might be enough to keep gains in check.
In fact, the 50% Fib level already seems to have held as resistance, although Ripple has yet to resume its slide to the swing low or the channel support. Until then, the correction could stay in play.
Cryptocurrencies have had a rough start to the week owing to revived security concerns in the industry. However, Ripple has managed to keep its head up, likely on account of consistent progress and expectations of stronger volumes down the line.
Keep in mind that one of its execs previously hinted that banks and institutions on its xCurrent roster might be looking to shift to xRapid at some point. The former is a messaging platform on payments updates between counterparties while the latter actually makes use of XRP to settle these cross-border transactions in almost real-time and at very low costs.
More recently, a Ripple exec highlighted how it is faster and cheaper than bitcoin. Cory Johnson stated:
“And really, the technology for XRP is like Bitcoin two dot oh. 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.”