Ripple is gaining more bullish traction as it found support at the area of interest visible on the 1-hour chart. This signals that the rally is set to resume and carry on, with the price likely setting its sights on the upside targets marked by the Fibonacci extension tool.
In particular, the swing high is close to the 50% extension at 0.3800 and might be where buyers are looking to book profits. Stronger bullish pressure could take it up to the 61.8% extension at 0.3920 or the 78.6% extension at 0.4129. The full extension is located near 0.4400.
The 100 SMA is above the longer-term 200 SMA, confirming that the path of least resistance is to the upside or that the uptrend is more likely to continue than to reverse. The 200 SMA lines up with the area of interest to add strength as a floor in the event of another dip while the 100 SMA is currently holding as dynamic support.
RSI seems to be making its way down, though, so sellers might take it easy from here until the oscillator indicates oversold conditions and turns back up. Stochastic is also on the move down to signal the presence of selling pressure.
Ripple got back on its feet as a number of positive updates for this particular digital asset came up in the previous week. For one, its cross-borders payment product xRapid added three new exchange platforms that would likely bring more volumes and activity.
According to Cory Johnson, Chief Market Strategist at Ripple:
We’ve seen several successful xRapid pilots already, and as we move the product from beta to production later this year, these exchange partners will allow us to provide financial institutions with the comfort and assurance that their payments will move seamlessly between different currencies.
Soon after, Kuwait released a YouTube video on using Ripple for a cross-border transactions system. Also in China, an exec mentioned that Ripple is looking closely at the country as part of an ongoing effort to streamline and speed up international payments using its distributed ledger technology.
Images courtesy of TradingView.