Ripple (XRP) Price Analysis: New Trend Channel Forming
Ripple has formed lower highs and lower lows to trend lower inside a descending channel on the 1-hour time frame. Price just came off a bounce from the resistance and is due for a move to the swing low or the channel bottom around .3300.
Price seems to be encountering some support at the mid-channel area of interest but might still have enough momentum to carry on its southbound route. The 100 SMA is below the longer-term 200 SMA, after all, confirming that the path of least resistance is to the downside.
RSI is also turning lower to confirm that selling pressure is in play and that further declines are in the cards. However, stochastic is already dipping into the oversold region and is starting to turn higher to signal a return in bullish pressure. In that case, another test of the channel top could be underway and a break higher could signal a reversal.
Ripple hasn’t been immune to the crypto bear market even as it has been one of the more resilient cryptocurrencies. It is holding on to the top two spot in terms of market cap after recently overtaking ethereum and many still believe that it could overpower bitcoin at some point.
Still, Ripple has encountered fresh criticism from dogecoin founder Jackson Palmer. Investors are shrugging these remarks off, though, as Ripple and NEM formed an EU blockchain. “Blockchain for Europe” association claims to be the first unified voice for the industry in the region, possibly an attempt for both to warm up to regulators.
As Ripple’s head of regulatory relations noted:
“Ripple is delighted to be a founding member of Blockchain for Europe. This is a critical time for policymakers in Europe as they seek to develop the right regulatory framework to capture the benefits of both digital assets and blockchain technology”