Ripple has been moving below a descending trend line visible on its 1-hour time frame but looks ready to reverse from this drop as it attempts an upside break. Price is starting to close above the trend line and also the 100 SMA dynamic resistance to signal a pickup in bullish pressure.
However, 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, the selloff is more likely to resume than to reverse from here. A move past the trend line could also hit a roadblock at the 200 SMA dynamic inflection point at the swing high around 0.4500.
Stochastic is still pointing up and just starting to climb out of the oversold region, indicating that buyers still have the upper hand. RSI is also just pulling up so the price might follow suit and reverse from the slide.
If the trend line resistance keeps holding, though, Ripple could make its way to the swing low at the 50% extension around 0.3870 or the 78.6% extension on stronger selling pressure. The full extension is located at 0.3250.
Ripple appears to be relatively resilient compared to its altcoin peers that suffered sharper declines in the previous week. This suggests that this particular digital asset may have more factors supporting it than the rest.
For one, this is also coming off a strong upside break from a longer-term trend line, indicating that a huge reversal is underway. This was due to expectations for the xRapid launch as mentioned by one of its execs. This was also followed by more banks joining the current roster of companies using xCurrent, leading many to speculate that the partners would soon transition to xRapid as well.
Also, one of its strategists revealed that Ripple is in talks with the Trump administration on a number of key issues, citing:
When you look at XRP, there is no mining, so from a foreign-control aspect or from an environmental aspect, XRP is a very different beast. And in conversations we’ve had with the administration, they seem to get that and think that might matter.
Images courtesy of TradingView
