Ripple is still stuck inside its descending triangle pattern highlighted in earlier articles but is approaching the peak to signal that a breakout is due soon. Price has bounced off the resistance and support as expected but the consolidating is getting narrower to indicate stronger pressure in either direction.
But which way will it go? Technical indicators are giving mixed signals at the moment, so it could still be anyone’s game at this point. The 100 SMA is above the longer-term 200 SMA to show that the path of least resistance is to the upside, but the gap is narrowing to signal weakening bullish momentum.
The 100 SMA lines up with the top of the triangle to add strength to the ceiling, but the 200 SMA lines up with the triangle support at the 0.2000 handle to add strength to the floor. This means that it would take a really strong market catalyst to trigger and sustain a breakout in either direction. The chart pattern spans 0.2000 to 0.3000 so the resulting move could last by 0.1000, taking Ripple down to 0.1000 or up to 0.3200.
Moving on, stochastic still seems to have some room to climb so there may be enough bullish momentum left. However, a downward crossover might be forming and the oscillator could turn lower to reflect a return in selling momentum. RSI is cruising around the middle of its range to signal that further consolidation is also possible.
The US dollar was off to a good start this week on improving geopolitical conditions, particularly when it comes to North Korea. However, this might just be the calm before the storm as the UN Security Council has yet to vote on sanctions and the hermit nation has previously stated that the the US will pay due price if harsh restrictions are imposed.
Keep in mind that risk-off flows tend to be positive for cryptocurrencies since these act as digital gold when investors are on the hunt for higher returns outside of stocks and commodities.