Ripple could be in for an uptrend as it moves to complete a double bottom on its 4-hour time frame. The price already busted through a longer-term descending channel visible on its daily chart, and a break past this reversal pattern’s neckline could confirm that a rally is underway.
The neckline is located around 0.3800 and the chart pattern is around 0.1200 tall, which means that the resulting climb could be of the same height. However, the 100 SMA is still below the longer-term 200 SMA on this time frame to suggest that the path of least resistance is to the downside.
In other words, there’s a stronger chance for the selloff to resume than to reverse. Then again, the price of Ripple has closed above the 200 SMA dynamic inflection point to signal that it would hold as support from here and that a crossover may happen soon.
RSI is indicating overbought conditions, though, or that buyers are already feeling exhausted by now. Turning lower could bring sellers back in and lead to another dip to the bottoms at 0.2600. Stochastic seems to have a bit more room to climb so buyers could stay in control for a while longer, although the oscillator is also nearing overbought levels.
Ripple has been one of the stronger-performing currencies lately, and many point to remarks from its exec on the upcoming xRapid launch and on regulation as the driving factors. Sagar Sabhari, head of regulatory relations in Asia-Pacific and the Middle-East, noted:
I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production.
xRapid will help banks speed up cross-border transactions by using Ripple as a bridge between fiat currencies. Note that Ripple has been mired by lawsuits in the past few months and these have restricted gains.
Images courtesy of TradingView
