- XRP / USD recovery limited by psychological $ 0.2000.
- Bloomberg’s Mike McGlone believes XRP exposure poses a risk to Ripple.
Ripple’s XRP hit the intraday high of $ 0.1997 as the cryptocurrency market resumed the recovery in the early Asian hours. However, at press time, XRP was down to $ 0.1977 to trade unchanged since the start of the day. Since that time on Sunday, the coin has gained over 1%. Ripple’s XRP is the third largest digital asset with a current market value of $ 8.7 billion and an average daily market trading volume of $ 1.8 billion.
XRP / USD: Technical picture
On the intraday chart, XRP / USD is supported by the center line of the 1-hour Bollinger Band ($ 0.1963) and the 1-hour SMA50 (currently $ 0.1950). This support area is followed by a 1 hour SMA100 at $ 0.1945 / Once that thick barrier is removed, the sell-off can continue towards the psychological $ 0.1900 which has served as the lower level of the most recent consolidation range since April 23rd.
The downward RSI on the 1 hour chart implies that the price may retest this area before attempting another recovery.
XRP / USD 1 hour chart
On the upside, a sustained move above $ 0.2000 is required for the upside move to gain ground. This barrier coincides with the recent consolidation channel and the top line of the daily Bollinger Band. The next resistance is created by the 23.6% fibo retracement for the downward move from the February 2020 high at $ 0.2130. Once it’s out of the way, the uptrend is likely to gain momentum, with the next focus on $ 0.2100 and $ 0.2175 (daily SMA100).
XRP / USD daily chart
According to Mike McGlone, senior commodity strategist at Bloomberg Intelligence, Ripple has the potential to disrupt the cross-border payments industry. However, volatility in the cryptocurrency market can slow the adoption of Ripple technology.
In the recently released Crypto Outlook report, McGlone commented:
Ripple Labs’ partnership with MoneyGram in 2019 suggests markets still see the potential for disruption to cross-border payments, but Ripple’s exposure to its own cryptocurrency threatens the enterprise software company. The project’s investors, including Mastercard, Visa, Capital One, Citigroup, and Bank of America, are likely only to hedge themselves.
He added that banks and financial institutions would be unwilling to adopt blockchain infrastructure solutions for clearing, settlement and payments on a large scale unless they have common standards and are approved by regulators.
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