Ripple has formed higher lows and higher highs to trend inside an ascending channel on its 1-hour time frame. Price is testing support and could be due for a bounce back to the next upside targets marked by the Fib extension tool.
In particular, the 50% level lines up with the mid-channel area of interest around the .4000 level. Sustained bullish momentum could take it up to the channel top at .4200 or the 78.6% extension level. The full extension is located at .4325.
The 100 SMA is still 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. However, the gap between the two is narrowing to indicate weakening selling pressure and hint at a possible upward crossover.
RSI is also turning higher to signal a return in bullish momentum. Stochastic has pulled out of the oversold region to indicate a pickup in buying pressure as well, likely keeping Ripple above support and on track for more gains.
Ripple is keeping up its longest streak as the second largest cryptocurrency in terms of market cap, overtaking ethereum earlier on. This could stay the case as Ripple continues to make strides in terms of partnerships and is moving towards launching version 4.0 of xCurrent.
According to Ripple SVP of product Asheesh Birla:
“What this release enables you to do is that in countries where you think it’s appropriate and xRapid’s available, using your xCurrent software, you can now plug into on-demand liquidity using xRapid.”
This should make it easier for consumers and institutions to shift to the xRapid platform, which uses actual XRP in facilitating cross-border transactions. Higher volumes could keep prices elevated as more customers tap into the features of Ripple’s offerings.