Ripple (XRP) Price Analysis: Bullish Break and Retest
Ripple was previously consolidating inside a descending triangle on its 1-hour time frame but broke to the upside to signal that bulls have won out. Price hit a ceiling around the 0.3600 level, though, and a pullback may be needed to gather more energy for a rally.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level is closest to the broken resistance, which might hold as support around 0.3300. A smaller correction could find support at the 38.2% or 50% Fib, which lines up with the 100 SMA dynamic inflection point.
On the subject of moving averages, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. The gap between the moving averages is also widening to signal stronger bullish momentum.
However, RSI has already hit overbought territory to signal exhaustion among buyers. Turning lower could bring selling pressure in enough to lead to a drop back to the support at 0.3150. Stochastic hasn’t quite hit overbought levels yet but is also showing signs of topping out and may be ready to fall back down.
Ripple was recently added by Bittrex exchange available to eligible personal and corporate accounts. As announced on Twitter:
Today, we’re adding XRP and ETC to our USD (Fiat) markets in addition to previously announced USD pairs for Bitcoin (BTC), Tether (USDT), TrueUSD (TUSD) and Ethereum (ETH).
This could bring more liquidity and activity for Ripple, which might be enough to keep price afloat. It also seems to be drawing demand from anticipation for the SEC decision on the ProShares bitcoin ETF application due on August 23.
Note that the ruling on this can no longer be delayed since it was filed back in December. Their decision could be an indication of how their ruling on other bitcoin ETF applications due in September might turn out.