HomeTradingRipple Technical Analysis for 09/07/2017 – Testing Triangle Resistance

Ripple Technical Analysis for 09/07/2017 – Testing Triangle Resistance


Ripple bounced off the descending triangle support highlighted in a previous article. Price is now back to the top of the triangle and resistance around 0.2300 could keep gains in check.

This lines up with the 200 SMA dynamic inflection point, which adds an extra ceiling for Ripple. The 100 SMA is below this longer-term moving average so the path of least resistance is to the downside. However, it’s also important to note that the moving averages are oscillating to indicate consolidation.

Stochastic has been lingering around the overbought zone for quite some time, but the oscillator is finally showing signs of heading lower. In that case, bearish pressure could return and push Ripple back to support around 0.1950. RSI also seems to be heading south even without hitting overbought levels, indicating that sellers are eager to hop back in.

Easing tensions with North Korea or the lack of negative updates for now could lead to profit-taking among cryptocurrencies, drawing traders back to stocks and commodities. However, a return in risk aversion stemming from a pickup in geopolitical risk could increase appetite for digital gold like bitcoin and Ripple.

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.

Dollar movements could also determine where XRPUSD is headed next. Expectations for a Fed interest rate hike later this month are running low, especially since the latest NFP missed forecasts and a few FOMC members warned about weak underlying inflation. Data has been mostly weaker but the US currency is currently drawing some support from reports indicating that US lawmakers have agreed to push back the debt limit to December 15.


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