August 21, 2017
Published by Sarah Jenn
Ripple made an upside break from a descending trend line visible on its 4-hour chart to confirm that a reversal is due. Price is finding resistance around 0.2000 and might be due for a pullback before heading any higher.
The 100 SMA is still below the longer-term 200 SMA to show that the path of least resistance is to the downside. However, the moving averages are treading close together to show that a crossover is possible.
Stochastic is indicating overbought conditions, which means that buyers are feeling exhausted and might need to book profits soon. In that case, Ripple could correct to the broken trend line at 0.1700 which is also near the moving averages dynamic inflection points. RSI is also in overbought territory so a drop may be due at some point.
Bitcoin rival cryptocurrencies are taking advantage of fresh concerns on the hard fork with bitcoin cash. Ethereum has jumped 10% while Ripple also logged in a solid rally as traders sought higher returns on alternative digital assets while the newer version of bitcoin gained more mining power.
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.
As for the dollar, geopolitical risk is also weighing on the US currency both on the domestic and international fronts. Traders are keeping tabs on headlines related to the tensions with North Korea as joint military exercises between the US and South Korea have started, something that may be interpreted as a provocation to Pyongyang.
The Trump administration is still in the hot seat after chief strategist Bannon resigned, leading to weaker expectations that significant fiscal reform can be achieved within the year.