Ripple recently broke out of its descending channel pattern on the 1-hour time frame then zoomed up to the 0.3000 major psychological mark. This held as resistance and price made a correction from there.
Applying the Fib tool on the latest swing low and high on this time frame shows that the 50% level lines up with the broken channel resistance around 0.2600. If this holds as support, Ripple could climb back to the swing high and beyond.
The 100 SMA is below the longer-term 200 SMA on this time frame, though, so the path of least resistance might still be to the downside. In that case, a larger correction to the 61.8% Fib at 0.2500 could happen or even a move back inside the channel.
However, the gap between the moving averages seems to be narrowing to suggest a potential upside crossover. If that happens, Ripple could enjoy a pickup in bullish momentum.
RSI is still pointing down to show that there’s some bearish momentum left while stochastic is also heading south and Ripple might follow suit. Once both oscillators hit oversold conditions and turn higher, buyers could return to the game.
Dollar demand rebounded in the latest US session after the FOMC hiked rates by 0.25% as expected and confirmed that they could stay on track towards tightening again before the end of the year.
The Fed also provided more details on their balance sheet unwinding, which could start later in the year or early next year. This could also reduce liquidity in the system, which would add value to the dollar.
However, many are still doubtful that the Fed can hike again in September or December as recent reports have reflected a slowdown in consumer spending and employment. If succeeding reports continue to turn out weaker than expected, rate hike expectations could continue to fall and the dollar could return its gains across the board.
Meanwhile, cryptocurrencies like bitcoin and Ripple tend to benefit from risk-off market scenarios as traders search for higher returns outside of traditional markets.