Ripple is stuck in consolidation, moving inside a range with support around 0.2700 and resistance at 0.3000. Price is hovering close to the top of the range and might be due for another test of support soon.

The 100 SMA just crossed below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the range resistance is more likely to hold than to break. However, the moving averages appear to be holding as dynamic support for the time being.

A break in either direction could lead to a rally of around 0.0300 or a selloff of the same size, which is the height of the range or rectangle chart pattern.

Stochastic is turning lower to indicate a pickup in bearish momentum. In that case, another test of support might be underway or perhaps even a break lower. RSI is on middle ground to indicate further consolidation but is turning slightly lower to show that sellers are gaining the upper hand.

Dollar demand has picked up recently after former FBI head Comey’s testimony didn’t deliver a smoking gun to the Trump administration, so traders are back to speculating that the fiscal policy reform could be underway soon. Of course this still hinges mostly on how US reports turn out in the coming weeks.

The next catalyst for a breakout is the FOMC statement next week during which the Fed might hike rates but signal that they will slow down their pace of tightening from here. Note that the May jobs report turned out weaker than expected and that inflation remains weak.

With that, a lot of profit-taking for the dollar could be underway and allow cryptocurrencies like bitcoin and Ripple to take advantage. A lot of volatility in the European markets could also draw investors to alternative markets as the United Kingdom tries to grapple with how it will deal with a hung parliament in the face of Brexit talks.

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