Ripple is getting a more bullish traction as it has found support in the area of interest visible on the 1 hour chart. This indicates that the rally is set to resume and carry on, with the price that is likely to set its objectives towards the high marked by the Fibonacci extension tool.
In particular, the swing is close to 50% to 0.3800 and could be where buyers are looking to book profits. Increased upward pressure could bring it to 61.8% extension to 0.3920 or to 78.6% to 0.4129. The full extension is located near 0.4400.
The 100 SMA is above the longer-term SMA 200, confirming that the path of least resistance is upward or that the upward trend is more likely to continue than to reverse. The 200 SMAs align with the area of interest to add strength as a floor in the event of another drop while the 100 SMA is currently in the hands of dynamic support.
RSI seems to be falling, however, so sellers could relax from here until the oscillator indicates oversold conditions and comes back. Also the Stochastic is in motion to signal the presence of sales pressure.
Ripple is back on its feet with the arrival of a series of positive updates for this particular digital asset in the previous week. For one, its cross-border payment product xRapid has added three new exchange platforms that will probably carry more volumes and assets.
According to Cpple Johnson, Ripple Chief Market Strategist:
We have already seen several successful xRapid pilots and as we move the product from beta to production later this year, these exchange partners will allow us to provide financial institutions the convenience and certainty that their payments will move seamlessly between different currencies.
Soon after, Kuwait released a YouTube video on the use of Ripple for a cross-border transaction system. Also in China, one executive said that Ripple is closely observing the country as part of a continuous effort to simplify and accelerate international payments using its distributed register technology.
Images courtesy of TradingView.