Ripple continues to slide after previously breaking below a descending triangle formation. Price appears to be setting its sights on the long-term lows around 0.2000 next.

The 100 SMA is safely below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Then again, the gap between the two is narrowing to signal weakening bearish pressure, but bulls probably won’t return until an upward crossover is seen.

RSI is heading lower but already in the oversold region to signal that sellers are feeling exhausted. Turning back up could bring buyers in, but the oscillator doesn’t seem ready for that yet. Stochastic is also heading lower even as it hits oversold levels, indicating that there may still be some bearish pressure left.

Ripple got a bit of good news on a US District Court (Northern District of California) ruling to deny a motion to remand against the cryptocurrency, its subsidiary XRP II, and Ripple CEO Brad Garlinghouse. According to its ruling:

The parties candidly admit that their research failed to turn up any case directly addressing this question and the court’s own research fared no better.

Lawsuits like these tend to undermine the reputation of altcoins involved, and it doesn’t help that Ripple and is peers have been on shaky ground for the past weeks. The ruling could support the legitimacy of Ripple and allow it to stem some losses.

For now, cryptocurrencies are also hoping to get some of the demand stemming from Turkey, although the gains appear to be confined to bitcoin. Keep in mind that altcoins could serve as alternative holdings for traders seeking to move out of stocks, commodities, fiat currencies, and a rapidly depreciating currency.

Image courtesy of TradingView

Tags: , , ,

Leave a Reply

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.