Ripple broke above its long-term descending trend line nearly a couple of months back, signaling that a reversal from the slide is underway. Price has since completed its pullback to draw more bullish momentum and sustain the climb.
However, the 100 SMA is still below the longer-term 200 SMA on the daily chart to signal that the path of least resistance is to the downside. In other words, there’s still a chance for the long-term downtrend to resume. Price has broken past the 200 SMA dynamic resistance, though, as an early indication that bullish pressure is building up.
With that, could aim for the next upside targets marked by the Fibonacci extension tool. The 38.2% Fib lines up with a resistance zone around .6000 while the 61.8% to 78.6% levels are near the swing high. The full extension is at .9505.
Stochastic is moving higher to indicate that buyers are in control but could lose ground to sellers again as the oscillator approaches overbought levels. Turning back down could spur another dip to nearby support zones at .4000. RSI is also heading north but is dipping into the overbought territory and might be looking to turn south as well.
Sentiment in the cryptocurrency industry got a positive boost from the report that indicated a bullish outlook for 2018. This also suggested that institutional investment could pick up soon.
The recent surge in Ripple allowed it to briefly overtake bitcoin in terms of market cap. This was also seen to be spurred by rumors that is gearing up to list XRP, although it would need to be deemed as a security for that to happen.
Note that Ripple is eyeing a possible transition from its partners using xCurrent to xRapid, which actually uses XRP to settle cross-border transactions. If so, the coin could enjoy stronger volumes and increased activity as well.
Images courtesy of TradingView
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