Ripple found resistance at the mid-channel area of interest on its 4-hour time frame, confirming that the downtrend is accelerating. Applying the Fibonacci extension tool on the latest swing high and low shows the next potential downside targets.
Price is already testing the 50% level at the moment and looks prime for a move to the 61.8% Fib at the bottom of the descending channel. Sustained selling pressure could lead to a break lower and a move to the 78.6% level at .2520 or the full extension at .2084.
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. The 100 SMA also recently held as a dynamic inflection point at the mid-channel area of interest. A larger pullback could last until the channel top that is just below the 200 SMA dynamic inflection point.
RSI is already indicating oversold conditions, though, or that selling pressure might be exhausted. Turning higher could lead to a return in bullish momentum and another bounce to the nearby resistance levels. Stochastic is also indicating oversold conditions or that bears are feeling tired.
Ripple has had a number of positive developments recently, such as starting the “Blockchain for Europe” initiative with three other blockchain companies and being included as the first cryptocurrency in the R3 platform.
On its own, Ripple is also making a lot of progress in the past few months but just couldn’t seem to shake off the downbeat vibes weighing on the entire industry. It doesn’t help that risk aversion is in play in the general financial markets on account of resurfacing trade tensions between the US and China, thereby discouraging traders from taking riskier holdings.