Ripple continues to trend lower and is hovering at the very bottom of its descending channel on the 4-hour chart. An alternative view of this would be a falling wedge pattern previously highlighted.
The 100 SMA remains below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse. In this case, support might be more likely to break than to hold. The moving averages are also holding as dynamic resistance levels so far.
If support holds, price could make another bounce to the top around 0.5000 or hit the barriers at the mid-channel area of interest once more. A break below support, on the other hand, could spur a steeper selloff.
RSI is still heading lower to show that sellers have the upper hand, but the oscillator is moving close to oversold territory to reflect exhaustion. Similarly stochastic is moving south so Ripple might follow suit but might be due to turn higher as it approaches oversold levels.
Cryptocurrencies like Ripple have had a rough ride for the past few days but there are still some factors supporting Ripple. One of these is the launch of DCEX, which is the first decentralized exchange with Ripple as its exclusive base currency.
Recall that most cryptocurrency exchanges are still heavily dependent on bitcoin, but this San-Francisco based DCEX promises faster transaction speeds that could allow clients to better take advantage of price arbitrage.
Meanwhile, the dollar continues to hold its ground leading up to the NFP release thanks to another set of upbeat economic reports. This further underscores the Fed’s hawkish tone and tightening plans, adding to the demand the dollar is enjoying from safe-haven flows.