Ripple (XRP) Price Analysis: Another Consolidation Pattern
Ripple failed to sustain its bullish momentum after an earlier upside break and retest, falling back inside a triangle consolidation pattern. This time, it formed higher lows and lower highs inside a symmetrical triangle.
Price is now testing the triangle support and might be due for a bounce back to the top. After all, the 100 SMA is still above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This suggests that support is more likely to hold than to break.
However, the gap between the moving averages has narrowed enough to signal that a bearish crossover may be imminent. Price is already below these dynamic inflection points to reflect a bit of downside pressure. A move below the triangle support around .3350 could mean a drop that’s the same height as the chart pattern.
RSI appears to be crawling higher, though, indicating that buyers are still trying to keep Ripple price afloat. Stochastic has also pulled up without even hitting oversold levels to signal that bulls are eager to return and defend the floor.
Ripple CEO Garlinghouse spoke of developments in the space and his outlook for cryptocurrencies, but this seems to have failed to prop up its price. He mentioned:
“If I were a consumer experiencing hyperinflation, would you rather hold a cryptocurrency or you’d rather hold your fiat currency? And a lot of those cases, you’re seeing people take pesos of various sorts and saying – I’d rather hold this because it’s a better asset to hold in terms of a potential appreciation and lack of inflation.”
He did admit that part of the challenges in Ripple is dealing with misinformation, especially since new tech tends to spring from the darker parts of the society or anti-establishment sentiment. He did clarify that the long-term value of cryptocurrencies is tied to their utility of solving a problem.