Ripple is forming another lower high to create a descending channel visible on its 4-hour time frame. Price could make its way back down to the channel support if the selloff resumes from here, possibly aiming for the Fib extension levels as well.
The 50% level lines up with the mid-channel area of interest around 0.4000 while the 78.6% level is closer to the channel support at 0.3300. Stronger selling pressure could take Ripple down to the full extension at 0.2758 mark or at least until the 0.3000 major psychological support.
The 100 SMA has crossed below the longer-term 200 SMA to signal that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. These moving averages are close to the channel top also, adding to its strength as resistance. However, a break past the 200 SMA dynamic inflection point could signal a continuation of the longer-term uptrend.
Stochastic is on the move down without even hitting the overbought zone, indicating that sellers are eager to return. RSI continues to cruise sideways to reflect range-bound conditions, barely providing any strong directional clues at the moment.
Cryptocurrencies like Ripple had a lot to go on in the previous week, but it seems that the optimism may be fading. Either that or traders are holding out for another set of strong catalysts to sustain the climb.
Still, Ripple has plenty of developments to keep it supported, most notably the looming launch of xRapid which would also support more volumes and activity. A number of big firms are already working with Ripple in their xCurrent platform so transitioning this set to using XRP would likely be enough to keep the altcoin’s price strongly supported.
In any case, news on regulation or any major changes in general financial market sentiment could still impact Ripple price action in the days ahead.