Ripple Price Key Highlights
- Ripple has been slowly trading lower against the dollar since it was first introduced.
- Price is moving inside a descending channel formation but is currently testing support so a bounce might be due.
- This is also close to the lows last week so there’s some buying interest at this area.
Ripple price could be due for a bounce off the short-term support zone, possibly leading to a test of the channel resistance.
Technical Indicators Signals
There’s not enough data to reflect the longer-term 200 SMA at the moment but the 100 SMA is currently around the channel resistance at 0.3200 to act as an additional barrier in the event of a downtrend correction. Stochastic is on its way down to suggest that sellers are still in control of ripple price action for now, possibly leading to a few more losses in the cards.
RSI Is also on its way down but is already dipping into oversold territory, which means that a bounce might be due. The recent long spikes in 1-hour candlesticks also reflect some degree of hesitation among sellers. If you’re looking to go long, wait for a candle close past the 0.2500 levels and for the oscillators to start turning higher to reflect a return in buying pressure.
A weak pullback could encounter resistance at the mid-channel area of interest at 0.2800, which might be enough to keep gains in check and spur another test of the channel support. On the other hand, a strong surge in buying momentum could lead to a break past the channel resistance and mark the start of a reversal.
Market Factors
Dollar demand seems to have weakened after the FOMC minutes reflected weaker conviction for future rate hikes. For one, some members spoke of waiting for more data to confirm if the Q1 slowdown was transitory while the increased focus on balance sheet adjustments could mean less need for tightening action later on.
Digital currencies like Ripple are able to take advantage of the pickup in risk aversion these days but it looks like bitcoin is taking the lion’s share of the gains since it is also backed by industry developments.
