Ripple recently broke above a descending trend line hinting that a reversal from the slide may be in order. Price has since gained momentum on this upside move as it also busted through a consolidation pattern.
From here, XRP could be aiming for the next area of interest at .3600 then the 200 SMA dynamic inflection point around .3800. The 100 SMA is still below the longer-term 200 SMA, though, so the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.
Then again, price has closed way above the 100 SMA as additional confirmation that bulls are charging. If this keeps up, the gap between the moving averages could narrow to reflect slower selling pressure and possibly signal a bullish crossover. After the 200 SMA dynamic resistance, the next ceiling might be at the .4000 mark.
RSI is already indicating overbought conditions, though, which means that buyers are starting to feel exhausted. Stochastic is moving up but also dipping into the overbought territory to signal that sellers might take over.
A bit of consolidation could be seen, but this might still prove to be a bullish continuation pattern. A break higher could spur a climb that’s the same height as the flag’s mast while a break lower could trigger a pullback to the 100 SMA, broken trend line, or former range resistance.
Altcoins are finally seeing strong green these days, picking up from feeble gains earlier on. Ripple is increasing its lead over ethereum with double-digit gains. Reports that TD Ameritrade Network is looking to add XRP to its trading mix may have contributed to the rallies as a tweet indicated:
“Glad you’re enjoying our content! We’re still exploring the #XRP space – stay tuned for more information. Our team is working hard to make things like this happen.”
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