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July 19, 2019
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price analysis ripple

Ripple’s XRP Price Analysis: XRP/USD Has Broken a Vital Barrier and the Bulls Can Now Stampede Higher

XRP/USD 60-min chart, price action extended to the upside from 10-day range. Eyes on further explosive moves, given the range breakout.

Ripple’s XRP has enjoyed a very chunky bull run going on three sessions now. Real life was kicked back into the bulls on the 17th December. This has seen the price gaining firmly over 30% to current levels on Wednesday. XRP had been moving within a range-block formation, from the 7th right up to the breakout on 17th December. Given the extent of time the price was confined, it wasn’t too surprising to see such an explosive move out.

There has been little in the way of huge fundamental developments of late directly relating to XRP. Perhaps inline with the rest of the market, the Santa rally has arrived. Nevertheless, we are still observing the news flow.

Western Union on Ripple and Cryptocurrencies

Western Union’s global money transfer President Odilon Almeida spoke in a recent company update.

The payments giant said they are heavily watching the expansion of global cryptocurrency adoption, indicating that they are ready to add another payment option in the form of crypto for its customers. Almeida says integrating crypto into the company’s overall offering of currencies is a simple task.

It is worth noting that Western Union have been piloting Ripple’s technology for the use of monetary transfers since 2015. The CEO, Hikmet Ersek, noted Western Union has recently completed tests with Ripple’s xRapid system, which for now they believe were “too early” to estimate accurate conclusions.

The Western Union global payment President Almeida further detailed, “Cryptocurrencies have so far failed to achieve broad acceptance because they have yet to master three things: governance, compliance and volatility. But Western Union is already better equipped to solve for such variables because it already moves money across 130 currencies and devotes substantial resources to all of those three challenges.”

Banks’ XRP Hesitation

Ripple’s global head of banking, Marjan Delatinne, was recently speaking in Frankfurt at Euro Finance Tech conference. She detailed how banks are demonstrating hesitation in leveraging Ripple’s XRP-powered cross-board solution for payments.

Marjan Delatinne commented, “Just to make clear, no banking institution is using that. Because as you’ve probably heard about, the regulatory framework around the usage of digital assets is not very clear for banks. But payment service providers and some other financial institutions are less governed by these obligations.”

Technical Review – XRP/USD

XRP/USD 4-hour chart. Price action broke out from range-block formation. Near-term targets; $0.40, $0.50 and $0.55.

Given the earlier detailed breakout from the mentioned range, it has left the door open to another wave of buying pressure. The bulls however must breakdown $0.40 for greater upside. This being an area of supply, having most recently seen at the back end of November. XRP/USD had failed to move back above this level, inviting sellers to pile back in.

A breakout to the upside from $0.40 could see a fast move back firmly within the $0.50 territory. Perhaps sending the price even as high as $0.55, within the near-term. The price last traded at these heights back at the start of November. This is where XRP/USD had been ranging for some time, prior to the big November – early December sell-off.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

1 comment

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