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The ripple broke above its long-term downtrend line about a couple of months ago, signaling that a reversal from the slide is underway. The price has completed its retreat to attract further bullish momentum and support the climb.
However, the 100 SMA is still below the long-term SMA 200 on the daily chart to signal that the path of least resistance is downward. In other words, there is still a chance that the long-term downtrend will resume. The price has exceeded the dynamic resistance of 200 SMA, however, as an early indication that the bullish pressure is accumulating.
With this, Ripple could aim at the next top goals scored by the Fibonacci extension tool. 38.2% of Fibers aligns with a resistance zone around 6000, while levels from 61.8% to 78.6% are close to the height of the swing. The full extension is at .9505.
The Stochastic is moving higher to indicate that buyers have control, but may lose ground to the sellers again as the oscillator approaches the overbought levels. Going back could push another dive into support areas near .4000. RSI is also heading north, but it is plunging into overbought territory and may even try to turn south.
Sentiment in the cryptocurrency sector received a positive boost from the Morgan Stanley report which indicated a bullish prospect for 2018. This also suggested that institutional investment could resume early.
The recent wave of Ripple has allowed to briefly exceed Bitcoin in terms of market capitalization. This has also been stimulated by rumors that Coinbase is preparing to list XRP, although it should be considered as a security for this to happen.
Note that Ripple is observing a possible transition from its partners using xCurrent to xRapid, which actually uses XRP to regulate transnational transactions. If so, the currency could enjoy stronger volumes and greater activity.
Images courtesy of TradingView
