Ripple may be in for a bullish trend as it moves to complete a double bottom over its 4 hour time frame. The price already busted through a long-term downtrend channel is visible on its daily chart, and a break over the neckline of this inversion model could confirm that a rally is under way.
The neckline is around 0.3800 and the graphic pattern is around 0.1200 in height, which means that the resulting climb could be of the same height. However, 100 SMA is still below the long-term SMA 200 in this time frame to suggest that the path of least resistance is downward.
In other words, there is a greater chance that the selloff will resume rather than reverse. Then again, the price of Ripple closed above the dynamic drop point of 200 SMA to signal that it would keep support from here and that a crossover could happen soon.
RSI is pointing to overbought conditions, though, or that buyers are already feeling exhausted by now. Turning lower could bring sellers back and lead to another dip at the bottom of 0.2600. Stochastic seems to have a bit more room to go up so that buyers can stay in control for a while. of time, even if the oscillator approaches the levels of overbought.
Ripple has been one of the strongest currencies in recent times, and many underline the comments of its executives on the imminent launch of xRapid and on regulation as driving factors . Sagar Sabhari, head of regulatory relations in Asia-Pacific and the Middle East, noted:
I am very confident that in the next month or so you will see some good news coming up where we launch the product live in production.
xRapid will help banks accelerate cross-border transactions by using Ripple as a bridge between legal currencies. Note that Ripple has been mired in lawsuits in recent months and these have limited earnings.
Images courtesy of TradingView