Ripple (XRP) Price Watch: Double Bottom and Trend Line Break
Ripple Price Key Highlights
Ripple is breaking above the descending trend line that’s been holding since the start of the month to signal a reversal.
Price is still retesting the broken resistance, and there may be a chance that this could be a fake out.
Technical indicators are also suggesting that the selloff could still resume from here.
Ripple is starting to break above the descending trend line on its 1-hour chart but is still too close to the resistance.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse. The gap between the two is also still widening to signal strengthening selling pressure, and there seems to be no sign of an imminent bullish crossover.
Further gains past current levels could take Ripple to the 100 SMA dynamic inflection point around 0.5000 or the 200 SMA at 0.5300. Note that Ripple also seems to have broken past the neckline of a small double bottom reversal pattern, so a rally of the same size may be in the works.
Stochastic is heading higher to indicate that buyers are in control of the game right now, but the oscillator is also nearing overbought levels to signal exhaustion. Turning back down could push Ripple back below the trend line to resume the slide. RSI also has some room to climb so buyers might have energy to sustain the climb, but the oscillator is also nearing overbought levels.
Ripple has drawn support from the WTO report highlighting its potential for disrupting the supply chain industry. It indicated:
“Ripple has ambitions to circumvent the correspondent banking model through its distributed ledger platform. It gives banks the ability to convert funds directly into different currencies in a matter of seconds and at little to no cost, without relying on correspondent banks.”
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