Ripple might be ready to resume its longer-term term climb as it formed an inverse head and shoulders pattern on its 1-hour time frame. Price has yet to test the neckline at the .4750 mark and break past this resistance to confirm that a climb is in the works.
If that happens, the price could climb by around .0300 or the same height as the reversal chart formation. However, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. These indicators might hold as dynamic resistance also.
Stochastic is heading south so Ripple might follow suit while sellers have the upper hand. However, the oscillator is nearing the oversold region to signal exhaustion among sellers and turning higher could bring a return in bullish momentum. RSI has more room to cover before reflecting oversold conditions, so sellers could stay in the game for much longer. In that case, a dip to support around .4450 could take place.
Ripple just reported that its revenue from XRP sales doubled in Q3 from the previous quarter, rising from $73.53 million to $73.53 million rising to $163.33 million. The sales were distributed between Ripple and its subsidiary XRP II, LLC. In the same quarter, Ripple released 3 billion of XRP tokens out of escrow, matching the same number released in the Q2.
However, the report did acknowledge that the volatility of XRP was weak throughout most of Q3 2018, save for the pickup in volatility and price in the last two weeks. Looking ahead, traders might anticipate stronger volumes as the attention is turning to the likely transition of its xCurrent roster to xRapid, which would actually use XRP in settling cross-border transactions.
Images courtesy of TradingView