Ripple continues to trade inside a descending channel and is now down to the very bottom. A bounce off this area could spur a rally back to the top or at least until the mid-channel area of interest.
RSI is already indicating oversold conditions or that sellers are tired. Turning higher could mean a return in bullish pressure that might take XRP back to nearby resistance levels. Stochastic has some room to head lower before hitting the oversold level, which means that sellers could still have some energy left. A break below the channel bottom could spur a steeper price decline.
The 100 SMA is still below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the downtrend is more likely to gain traction than to reverse. Also, the gap between the moving averages is widening to reflect stronger selling momentum. Both these moving averages could hold as dynamic inflection points as well, before XRP even bounces all the way up to the channel top at .3050.
Cryptocurrencies had another one of their tough days as most of the coins saw red. Ripple has had some positive updates to its credit, including being named as one of Forbes’ Most Innovative Fintech Companies In 2019. It wrote:
“Its blockchain based global settlements network aims to replace SWIFT, the interbank messaging platform that has long connected nearly every bank in the world. Ripple has also launched a service that lets companies make cross-border payments in XRP, the cryptocurrency created by its founders, which was recently second to Bitcoin in value.”
Furthermore, Forbes mentioned that six blockchain companies in the list—Axoni, Bitfury, Circle, Coinbase, Gemini, and Ripple—will “undoubtedly form some unusual alliances as they evolve past competing against other blockchain startups, to competing in mainstream finance against long-established players.”