Ripple is keeping its head above the bottom of the ascending channel visible on the 4-hour chart as bulls continue to defend support. XRP has overtaken ethereum in the top two spots of cryptocurrency rankings based on market cap thanks to its resilience so far.
The 100 SMA is above the longer-term 200 SMA on this time frame, confirming that the path of least resistance is to the upside or that the climb is more likely to resume than to reverse. Price seems to be finding dynamic resistance at the 100 SMA, though, but closing above this could draw more bullish momentum in.
This channel support lines up with an area of interest or a former resistance turned support zone where buyers had likely been waiting. RSI is turning higher to indicate that buyers are starting to regain the upper hand. This oscillator has a lot of ground to cover before reaching the overbought zone, which suggests that bulls could have enough energy for a move to the channel top at .5800 or the middle around .5300.
Stochastic is also heading higher to confirm that buyers have control at the moment. This oscillator is nearing the overbought area, however, so there may be some bullish exhaustion soon.
Cryptocurrencies have tumbled to yearly lows on account of the uncertainty related to the “civil war” of the Bitcoin Cash hard fork. The community is struggling to reach a consensus on which version to support, with one winning the hash wars and the other preferred by investors based on volume and price.
Investors are wary that this similar issues could come up for other digital assets at some point, hence the liquidation of some holdings leading up to the upgrade. Ripple, however, has managed to hold its ground as prospects seem brighter as the focus has been on positive developments like official support from Coinbase Custody.
Images courtesy of TradingView
