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Ripple is gaining traction on its slide as it moves under the center channel's area of interest on its descending channel. However, the price is also around a key support area that has been held since late November.
If buyers are waiting to buy on dips in this area, support could still hold and push the price to the top of the channel. The sustained bullish momentum could even lead to an upside break and a stronger rally. Then again, the 100 SMA is below the 200 longer-term SMA to indicate that the path of least resistance is downward. In other words, the selloff is likely to resume rather than the other way around.
Furthermore, the gap between moving averages is widening to reflect the increase in selling pressure. The 100 SMA is just below the top of the 0.3600 channel to add another layer of resistance while the 200 SMA adds another barrier to 0.3700.
The RSI seems ready to stop when it comes close to the oversold region, indicating that the selling pressure is falling and that buyers could come back. Stochastic also indicates oversold conditions and moving north could lead to Ripple to follow suit.
The XRP is showing signs of expansion as it slows down on the slide, but still seems vulnerable to the overall industry sentiment. So far, downside predictions are convincing more investors to jump ship and wait for a real rebound before re-establishing their positions.
The digital asset could be due to a big rebound, since it has just been reported that R3 has added Ripple as the first cryptocurrency supported on its new universal payment platform.
According to Richard Gendal Brown, R3 Chief Technical Officer:
"The deployment of the Settler Cord and its support for XRP as the first settlement mechanism is an important step to show how the powerful ecosystems cultivated by two of the world's most influential crypto and blockchain communities can work together."
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