Ripple completed its double bottom breakout to signal that an uptrend is underway. Ripple broke out of its descending trend line and double bottom formation, confirming that bulls are taking control of price action. A long green candle can also be seen on the daily time frame, also indicating that bullish momentum is picking up.
However, the 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside.
This suggests that there’s still a chance for the selloff to resume, but it’s also worth noting that Ripple has busted through this dynamic inflection point already. Price could be on its way to test the next dynamic resistance at the 200 SMA.
RSI is pointing up but also hitting overbought levels, which suggests that buyers are feeling exhausted and might let sellers take over again. Stochastic has some room to climb before reaching the oversold region and also reflecting exhaustion among buyers.
Turning lower could bring bearish pressure in and lead to a pullback to nearby support levels, perhaps until the broken neckline of the double bottom around 0.3500.
Ripple has drawn a lot of attention since a company exec noted that they are moving closer to launching xRapid, which would facilitate cross-border payments through the use of XRP itself. A number of big financial institutions are already working with the company through its xCurrent platform, which is basically a real-time messaging service between counterparties updating each other on stages of the transaction.
Being able to transition these clients to xRapid would represent tremendous success and demand for Ripple, so it’s understandable that traders are trying to get a piece of the action early on. Ripple’s exec also noted that the regulatory environment has improved and has been more friendly to crypto developments lately, keeping industry hopes up ahead of the SEC ruling on bitcoin ETFs.
