- The recovery of XRP / USD will be limited to the psychological level of $ 0.2000.
- Bloomberg’s Mike McGlone believes exposure to XRP 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 have been trading 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 exposure threatens Ripple’s cross-border payment company
According to Mike McGlone, senior commodity strategist at Bloomberg Intelligence, Ripple has the potential to disrupt the cross-border payments industry; However, the volatility of the cryptocurrency market can slow the adoption of Ripple’s technology.
In the most recent Crypto Outlook report, McGlone commented:
Ripple Labs’ 2019 partnership with MoneyGram suggests that markets still see the potential for disruption to cross-border payments, but Ripple’s exposure to its own cryptocurrency threatens its enterprise software company. The project’s investors, including Mastercard, Visa, Capital One, Citigroup, and Bank of America, are likely just hedges.
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 have been approved by regulators.
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 1-hour SMA50 (currently at $ 0.1950). This support area is followed by the 1-hour SMA100 at $ 0.1945. Once that thick barrier is crossed, the sell-off could continue towards the psychological $ 0.1900, which has served as the lower level of the latest consolidation range since April 23rd.
The downward RSI on the 1-hour chart suggests that price may retest this area before attempting another recovery.
XRP / USD 1 hour chart
On the other hand, a sustained move above $ 0.2000 is required for the upward move to gain momentum. 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 upside is likely to gain momentum with next focus on $ 0.2100 and $ 0.2175 (daily SMA100).
XRP / USD daily chart
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