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The ripple broke above its long-term downward trend line earlier and seems to have completed a rapid withdrawal. The application of the Fibonacci extension tool on this correction shows the next potential upward targets.
The 61.8% level is aligned with the highest peak at 0.5285, while the 38.2% level also coincides with the psychological resistance greater than 0.5000. A higher upward thrust could bring Ripple up to 78.6% to 0.5500 or the full extension to 0.5800.
The 100 SMA is still below the 200 longer-term SMA to indicate that the path of least resistance is towards the negative side or that there is still a chance that the selloff will resume. However, the gap between the indicators decreased significantly to reflect the lower selling pressure and a potential crossover towards the top. The 200 SMA also had dynamic support and could continue to do so.
Stochastic is plunging into the overbought region, however, so there may be some hint of exhaustion among buyers. The rollover could allow sellers to return and lead to another decline in Ripple, probably until the short-term rising trend line around the floating low or 0.4500.
The RSI is progressing sideways but nearing the overbought zone, which also suggests that buyers could soon book profits and bring in price drops.
However, it is worth noting that the mood in the sector is a bit more positive as it is expected that the institutional funds will enter and keep illegal immigrants afloat. As for Ripple, the The White House has had a particular interest in this altcoin and could try to use it against China.
According to Cory Johnson:
"When I started meeting people in government and regulators, I had very low expectations, I was really surprised by the open mind, number one, and number two, smart questions, sometimes even difficult questions. There is clearly a lot of homework going on: the White House, in particular, seems to be thinking about what it means to have 80% of the Bitcoin mines in China and most of the Ether mines in China. "
