XRP could be warming up for a climb as it busted through a short-term descending trend line that had been holding since late November. Price is still pretty close to the resistance area, so the uptrend has yet to gain momentum.
Also, 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, there’s still a stronger chance for the selloff to resume than to reverse.
The gap between the moving averages has narrowed, though, indicating that bearish momentum is slowing and that a bullish crossover may be due. Price has also crossed above the 100 SMA dynamic inflection point to signal a pickup in bullish pressure but has yet to move past the 200 SMA dynamic resistance.
RSI is on the move down to indicate that sellers have the upper hand and could stay in control until oversold conditions are seen. Stochastic is also heading south so XRP could follow suit while sellers are on top, but this oscillator is moving closer to the oversold region.
Ripple investors are still waiting on Coinbase to add XRP to its listings but the exchange has been particularly cautious, probably due to the class action lawsuit filed against Ripple Labs brought in federal court.
Binance CEO Changpeng Zhao said that XRP is not a security and thus Ripple has not violated securities laws for its sale. However, he did warn that if the SEC were to declare it as such, it might have repercussions on investors and companies.
On a more upbeat note, international payment provider Currencies Direct affirmed that Ripple’s cross-border payments technology could be a gamechanger. The company could use the xCurrent platform to open a new cross-border remittance corridor from the UK to India and has also experimented with the xRapid offering.