Ripple was previously cruising lower inside a long-term descending channel visible on the daily time frame, but it looks like a reversal is underway. Price just closed above the resistance and is following up with another green daily candle to reflect more bullish momentum.
However, the 100 SMA is still below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse. Price could still hit a roadblock at these dynamic inflection points after all.
RSI still has some room to climb, which means that buying pressure could stay a bit longer and keep pushing Ripple higher. Stochastic has even more room to head higher before hitting overbought levels, which means that buying pressure could carry on.
A climb towards the 0.4000 mark could even complete a double bottom formation, which might give buyers more reason to jump in. After all, a break past this neckline could spur additional gains of the same height as the reversal pattern.
The looming launch of xRapid is drawing traders back to Ripple. According to Sagar Sarbhai, Ripple’s regulatory relations in Asia-Pacific and Middle East:
“A couple of years ago the narrative was: blockchain good, crypto bad. What we’re now seeing is more and more regulators, policymakers taking the whole space in one conjunction. So, I think that narrative thankfully is now changing because policymakers, regulators are seeing that there is a strong benefit that digital assets, cryptocurrencies bring in.”
However, some were quick to point out that this announcement was made the other day and that the actual big jump in price more recently didn’t coincide with major catalysts. Some blame the lack of momentum in other markets and the lower liquidity as the reason why the price spiked so much.