Ripple has been gaining ground after breaking above a short-term consolidation pattern. However, price is now hitting a solid resistance area at a former swing low and a descending trend line connecting the latest highs of price action.
The 100 SMA also appears to be holding as a dynamic inflection point. This is in line with the 61.8% Fibonacci retracement level at 0.2100, which is the line in the sand for the ongoing downtrend. A break past this level could signal that bulls are regaining control of Ripple price action.
Stochastic is turning lower to indicate that bearish momentum is getting stronger. RSI is also pointing down so Ripple might be on its way to test the swing low at 0.1500. For now, price is also stalling at a nearby area of interest or former resistance near 0.1900.
The US dollar gave up ground to its rivals in recent trading sessions after Fed Chairperson Yellen sounded more neutral in her testimony. She reiterated that weak inflation remains a factor in policymakers’ discussions and that a gradual approach to hiking is still appropriate.
Yellen did mention that they’re looking to start the balance sheet runoff later in the year, something that might put fresh upside pressure on the US dollar. The company behind Ripple is focused on building a better bitcoin as it wants to handle transaction volume on a higher scale. The company approaches banks with its enterprise software, along with the Interledger Protocol. They propose a corresponding banking paradigm in which banks with no direct relationship rely on intermediaries in order to send payments to each other.
Cryptocurrencies appear to be in recovery mode these days, though, as bitcoin is trying to shrug off bearish forecasts and speculations of a hard fork. Still, it would need a much stronger positive catalyst from the industry to sustain these gains and allow digital assets like Ripple to retest their former highs or create new ones.