Ripple Technical Analysis for 07/07/2017 – Breakout Bound to Happen

Ripple’s consolidation has gotten tighter and tighter, which means that a breakout in either direction has to happen soon. Price is currently hovering close to the triangle resistance but might still test support near 0.2450 from here.

The 100 SMA is attempting to cross above the longer-term 200 SMA to signal that the path of least resistance is to the upside. When this is completed, more buyers could join in and push Ripple up by around 0.0500 or the same height as the triangle pattern. Similarly, a break below support could lead to a drop of 0.0500.

Stochastic is pointing down to indicate that bears are in control and that further losses are possible. RSI has been treading sideways but is also heading lower so Ripple might follow suit.

The company behind Ripple is focused on building a better bitcoin as it wants to handle transaction volume on a higher scale. The company approaches banks with its enterprise software, along with the Interledger Protocol. They propose a corresponding banking paradigm in which banks with no direct relationship rely on intermediaries in order to send payments to each other.

It looks like the dollar is putting up a good fight against Ripple, though, as there are still strong expectations that the Fed would be able to start unwinding its balance sheet in a couple months while also hiking rates one more time before the year ends. However, the upcoming NFP release could influence these biases and possibly lead to a breakout in XRPUSD.

Leading indicators have mostly hinted at a downside surprise so market watchers aren’t expecting too much. A 175K rise in hiring could be enough to seal the deal for another 0.25% Fed rate hike, which would be dollar bullish, and a much higher increase could lead to stronger gains versus Ripple.

On the other hand, a weak read and negative revisions to earlier figures could mean dollar weakness and allow cryptocurrencies like Ripple to take advantage. Either way, additional volatility is expected during the actual release so it could be best to wait for the initial reaction to settle down before taking a particular direction.