Ripple finally broke out of its symmetrical triangle formation and dipped to the .3260 mark to signal that a correction is underway. Applying the Fibonacci retracement tool on the breakout move shows potential resistance levels where sellers might be waiting.
The 50% level is close to the broken triangle bottom, which might be enough to hold as resistance. The 61.8% level is near the dynamic resistance at the moving averages, just slightly back inside the triangle.
On the subject of moving averages, the 100 SMA is crossing below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. If any of the levels are enough to keep gains in check, Ripple could resume the slide to the swing low or lower.
RSI is still heading out of the oversold region to signal that buyers are returning. This oscillator has some room to climb before hitting the overbought zone, which suggests that bullish momentum could stay in play for a bit longer. Stochastic is heading north to signal that buyers have the upper hand and XRP could follow suit.
Ripple has been a bit more resilient compared to its peers when it comes to weathering losses, even as it also succumbed to the selling pressure over the past week. Note that, despite that, Ripple continues to strike partnerships with banks and financial institutions with its products like xCurrent.
It is also widely expected that these partners could be transitioned to using the xRapid platform later on, allowing them to use XRP in facilitating cross-border transactions in almost real-time. In that case, XRP levels could tick higher and keep prices supported.
Also, the fact that XRP is inching closer to overtaking Bitcoin in the top spot of cryptocurrency rankings by market cap is also a reason to move funds to Ripple.
Images courtesy of TradingView
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