Ripple broke above its long-term descending trend line earlier on and appears to have completed a quick pullback. Applying the Fibonacci extension tool on this correction shows the next potential upside targets.
The 61.8% level lines up with the spike higher to 0.5285 while the 38.2% level also coincides with resistance at the 0.5000 major psychological mark. Stronger bullish momentum could take Ripple up to the 78.6% extension at 0.5500 or the full extension at 0.5800.
The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that there’s still a chance the selloff could resume. However, the gap between the indicators has narrowed significantly to reflect slower selling pressure and a potential upward crossover. The 200 SMA also recently held as dynamic support and might keep doing so.
Stochastic is dipping into the overbought region, though, so there may be some hint of exhaustion among buyers. Turning back down could allow sellers to return and lead to another dip in Ripple, possibly until the short-term rising trend line around the swing low or 0.4500.
RSI is treading sideways but lingering close to the overbought zone, which also suggests that buyers might book profits soon and lead to dips in price.
Still, it’s worth noting that the mood in the industry is a bit more positive as institutional funds are expected to flow in and keep altcoins afloat. As for Ripple itself, the White House has taken a particular interest in this altcoin and might be looking to use it against China.
According to Cory Johnson:
“When I started to meet with people in government and regulators, I had very low expectations. I have been truly amazed at the open-mindedness, number one. And number two, the smart questions, sometimes even tough questions. There’s clearly a lot of homework going on. The White House, in particular, seems to be thinking about what it means to have 80 percent of Bitcoin mining taking place in China and a majority of Ether mining taking place in China.”