Ripple has formed lower highs and higher lows to create a symmetrical triangle on the 1-hour chart. Price is currently testing the top but seems prime for a move back to support around .3700 yet again.
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, support might be more likely to break than to hold. If that happens, XRP could fall by the same height as the chart formation, which spans .3400 to .4000.
RSI is turning lower after recently hitting the overbought zone, indicating that selling pressure is about to return. Stochastic is also pointing down and has plenty of room to head south, so XRP might follow suit.
Then again, the moving averages appear to be oscillating to signal that range-bound conditions could persist. This could lead to the triangle support holding and another bounce to the top taking place. A break past the .3800 mark could spur a climb of the same size.
Confirmation that SWIFT and Ripple won’t be signing a partnership and are actually rather in direct competition with each other may have kept a lid on some of XRP’s gains so far. This was clarified by Ripple’s Cory Johnson who said Ripple intends to offer a product that competes with SWIFT and eventually replaces it.
Furthermore, Johnson suggested that retail giant Amazon could benefit from Ripple’s offerings, citing:
“We can look at the $23 trillion dollars that are laying around in nostro and vostro accounts that are sort of set up, waiting for pre-payment, because money is so slow. Amazon – probably the most capital-efficient company in the history of the world – has a billion dollars laying around in accounts to pay employees somewhere, or to pay a vendor somewhere, because the system of moving money is so slow.”