Ripple recently broke below its symmetrical triangle consolidation to signal that a downtrend is due. However, price found support at the .3260 mark and looks prime for a pullback to the broken triangle bottom.
The 100 SMA is crossing below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Applying the Fib tool to the latest swing high and low shows that the 50% level is closest to the broken support, which might now hold as resistance.
A larger pullback could last until the 61.8% Fib, which is just below the moving averages’ dynamic inflection points. If these are enough to keep gains in check, Ripple might resume its drop to the swing low or lower. Note that XRP is set to slide by the same height as the chart pattern, which spans .4000 to .6000.
Volume remains elevated so there could be enough volatility spur a large correction. But if the 38.2% Fib is enough to hold as resistance, the downtrend might resume sooner. RSI has room to climb up, though, as it just pulled out of the oversold region and has a lot of ground to cover before indicating overbought conditions.
Ripple remains a bit more supported compared to its altcoin rivals as this just overtook ethereum and might even be poised to push bitcoin off its top spot in market cap. In that case, investors could put more attention in this particular cryptocurrency and move their funds there instead.
Note that Ripple is gearing up for the launch of its xRapid platform which would likely bring over its institutional clients already using the xCurrent messaging portal to use actual XRP in facilitating cross-border transactions. The company continues to strike more partnerships in the past few days despite the industry selloff.