Ripple was previously consolidating inside a descending triangle formation visible on its 1-hour and 4-hour time frames. Price just recently broke to the upside to signal that buyers are gaining the upper hand.
The chart pattern is around 0.2800 to 0.3400 so the resulting rally could last by the same height. Stronger bullish pressure could take it up to the area of interest at the 0.3500 major psychological level and beyond.
Stochastic is pointing up to confirm that bulls are gaining traction. RSI, on the other hand, is treading around middle ground to reflect potential consolidation. There is near-term resistance located at 0.3000 and support at 0.2800 so price could keep bouncing up and down in that range.
Dollar traders are on edge today as former FBI head Comey will be testifying in front of Senate. He is expected to shed more light on whether or not President Trump committed an impeachable offense in divulging highly-classified intelligence information to Russian officials. If so, weaker expectations of fiscal policy changes or tax reform could drag the dollar down across the board.
During these scenarios, uncertainties could also shore up demand for alternative assets like bitcoin or Ripple as these tend to bring higher returns compared to traditional markets like stocks or commodities. Another factor keeping risk aversion in play is the upcoming UK elections that could determine how the government can approach Brexit.
Over the past weeks, some polls have been indicating a narrower lead for the Conservatives, leading to expectations of a hung parliament. This outcome could make it difficult for the government to push any reforms forward or to have a solid negotiating front in Brexit talks. On the other hand, if the Conservatives are able to retain majority, risk appetite could return and lead to profit-taking among digital currencies like Ripple.
With that, volatility is to be expected throughout the day as traders might react quickly to any headlines or statements. Price action could establish a clearer direction much later in the day or towards the end of the week.