Ripple recently broke past a descending trend line on its 1-hour time frame, indicating that it’s ready to reverse from the slide. However, price seems to be making a correction before establishing stronger bullish momentum.
Applying the Fib tool on the latest swing low and high shows that the 61.8% retracement level lines up with the broken trend line and the moving averages. The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is to the upside.
If any of the Fib levels hold as support, Ripple could make its way back up to the recent swing high at 0.3420 and beyond. Stochastic already seems to be pulling up to show a pickup in buying pressure but RSI is still on the move down to show that sellers have enough energy left for a larger correction.
A break below the moving averages and the broken trend line could lead to another test of support at 0.2000 then at 0.1500. Note, however, that the 0.2500 area is a pretty strong area of interest so there could be a lot of buy orders waiting at that level.
Ripple is regaining interest as cryptocurrencies are back in the limelight again. Ethereum has overtaken bitcoin in terms of trading volume owing to a resurgence in interest from China but it is already trading at record highs.
Ripple, on the other hand, is still fairly at affordable levels but also seems to be ready to take flight. Just like ethereum, Ripple has functionalities that give it tremendous long-term potential in applications by institutions and banks.
In particular, its interledger protocol is what makes ripple appealing. This protocol is used to send money between individuals sharing one password on the same channel. This addresses several exchange problems, such as sending and receiving money between banks and overseas. As such, it has enjoyed strong support from the financial community, also because it helps counterparties save on fees.
