Will the Downbeat Mood Send Ripple’s XRP Lower?
On Thursday, trading in Ripple's XRP is somewhat muted after it suffered a slight dip earlier in the session amid an overall bearish mood
On Thursday, trading in Ripple’s XRP is somewhat muted after it suffered a slight dip earlier in the session amid an overall bearish mood afflicting the wider crypto market. At the time of writing, XRP/USD is trading at around $0.65.
The mood among crypto investors has been affected by the rising uncertainties about global economic recovery in the wake of the latest spike in COVID-19 cases across several parts of the world. This has caused many regions to reimpose lockdowns and restrictions, hurting the overall market sentiment and sending investors away from trading riskier instruments like cryptocurrencies and towards the safety of traditional assets, with the US dollar being one of the biggest gainers lately.
The strengthening in the US dollar is exerting additional downward pressure on leading cryptocurrencies, XRP included. Meanwhile, the downtrend in the crypto market owing to regulatory uncertainties is also keeping investors somewhat wary and hesitant, especially after leading analysts forecast further downside for the world’s largest cryptocurrency, BTC. A downtrend in BTC further fuels the downbeat mood towards Ripple’s XRP, causing it to trader under pressure.
Recent Fundamental Developments
On the fundamentals front, however, there are some promising developments likely to offer XRP some support and cap its losses. For starters, a subsidiary of Japan’s leading bank SBI has announced a new partnership with Hamamatsu Iwata Credit Bank to leverage the RippleNet technology for international remittances soon, a development that is sure to boost XRP’s ODL (On-Demand Liquidity) offerings in the coming months.
Despite the ongoing lawsuit with the SEC, Ripple is optimistic about its future prospects, hiring former Mastercard executive Sendi Young to oversee its European operations as Managing Director. Sendi’s addition to the team is going to help the company expand its RippleNet offering using XRP’s ODL into the European region.
Key Levels to Watch
On the 4-hour chart of XRP/USD, most of the moving averages and leading technical indicators MACD and momentum are suggesting a bearish bias. The price is holding just above the pivot point at the $0.64 level, and if the downbeat mood continues, we could see Ripple’s XRP fall below this level and make its way lower to test support at $0.51.
However, on the other hand, an improvement in the market sentiment can encourage buyers to step in and take the price higher from the current level, all the way up to $0.78 where they could face some resistance. A break beyond this can see XRP climb back up above the key $0.90 level, a little above which sits the next resistance level at $0.91.
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