Ripple’s XRP has been victim to some extremely mundane trading of late. Price action over the last twelve sessions now has been range-bound, indicating a lack of committed direction. This has largely been the case since the bulls cooled on 24th December.
The easing in price action came after a solid bull run from 16th – 24th December, XRP/USD gained a whopping 60% over this period. It appears resting was required from that very explosive buying pressure, hence the recent consolidation mode. In terms of news flow, there has been little in the way of encouraging developments for Ripple’s XRP.
Swift Back to Haunt Ripple
It appears SWIFT is really attempting to step up its game after no doubt feeling the pressure from its blockchain competitors, such as Ripple. As a recap, in December 2018 SWIFT introduced the launch of ‘integrated payment validation’. This is a new solution to compete with fintechs and the emerging blockchain-based solution companies.
In the latest update this week, it was confirmed by SWIFT that this new feature is currently now being piloted, within an official press release. They have been able to finalize 14 essential banks for pilot testing on this “pre-validation” to detect errors.
SWIFT commented: “The pilot is the first stage in the roll-out of the ambitious gpi validation programme. The goal of the pilot is to build the foundation of a new integrated and interactive service. That will significantly improve efficiencies in the payments process and which will ultimately be made available to all 10,000 banks across the SWIFT network.”
Technical Review – XRP/USD
Despite the lack of recent supportive fundamental news flow for now, price action within the current consolidation mode has formed a bullish pennant. XRP/USD movement has greatly narrowed within this technical structure. Upside resistance can be eyed at $0.3830, which is the above trend line of the pattern. Support is seen not too far below the current price, this is tracking at $0.3600.
Furthermore, given the extent of time XRP/USD has traded within this pennant, the next move for the bulls should be explosive. The $0.4000 territory that has plagued upside progress would likely be history. A big jump towards the psychological $0.5000 mark, could very well be seen. The price last traded here back on 20th November 2018.
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.
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