Ripple (XRPUSD) Technical Analysis: Trend Line Bounce or Break?

Ripple is still moving below its descending trend line on the 1-hour time frame and is currently testing the resistance. Bears seem to be returning and using the Fib extension tool shows the next potential downside targets.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, resistance is more likely to hold than to break and the selloff might resume from here. After all, the 100 SMA dynamic inflection point lines up with the trend line to add to its strength as resistance.

The Fib extension tool shows that the 50% level lines up with the swing low, which might be the first take-profit point for sellers. Stronger selling pressure could take it down to the 61.8% extension at 0.3724 or the 78.6% extension at 0.3515. The full extension is located at 0.3249.

Stochastic is heading higher after recently hitting oversold territory, though, indicating that buyers are regaining control of the game. RSI is also heading north so Ripple might follow suit and attempt an upside break from the trend line.

Ripple has had a number of positive updates earlier on compared to most of its altcoin peers, so it’s understandable that this particular digital asset is able to keep its head above water.

More recently, it has been reported that Alphacat added XRP real-time forecasting in its ACAT store, allowing traders to predict the trends of cryptocurrency prices in 15, 30, and 45 minute intervals. XRP joins other digital currencies in the ACAT store such as NEO, BTC, ETH, EOS, and ADA.

Also, Ripple is reportedly in talks with officials in the Trump administration on a number of topics. According to Cory Johnson:

When you look at XRP, there is no mining, so from a foreign-control aspect or from an environmental aspect, XRP is a very different beast. And in conversations we’ve had with the administration, they seem to get that and think that might matter.