Ripple’s XRP Moves Bearish But Fundamentals Could Interest Buyers
Ripple’s XRP has steadied somewhat after a decline earlier in the day, but looks set to go along with the downbeat mood in the overall crypto market after losing more than 2.5% of its value over the past 24 hours. At the time of writing, XRP/USD is trading around $0.64.
The bearish mood has affected this digital currency to a greater extent after Ripple unleashes 1 billion XRP into the market during the previous session, despite the ongoing legal troubles with the SEC. Of the 1 billion XRP tokens released from escrow, about 80% gets locked back in escrow and the remainder is made available to crypto exchanges for trading, maintaining liquidity in the digital asset and generating capital for Ripple’s operations.
Meanwhile, on a positive note, XRP is likely to find some support over emerging news that Ripple is getting in on the NFT craze. The company is one of the investors who have poured in $13 million worth of funding into Singapore-based NFT marketplace Mintable.
Mintable is also planning an integration with Ripple’s XRP Ledger to take advantage of the network’s low transaction fees and energy consumptions to drive mass adoption of NFTs among consumers. On the development, Ripple states, “We couldn’t be more excited to work with our friends at Mintable to provide creators and developers with a best-in-class experience and bring more participants into the blockchain ecosystem with NFTs.”
Key Levels to Watch
On the 4-hour chart of XRP/USD, moving averages and the MACD indicator are signaling a bearish bias. However, there seems to be some interest in buying action building up, with the momentum indicator and Stochastics RSI suggesting a bullish bias.
The price is sitting right on the pivot point at $0.64, making it a very interesting time to monitor price action in XRP. A move upwards could take Ripple’s XRP towards $0.78 where buyers could encounter resistance before breaking above the key $0.80 level. However, in case of further bearish moves, keep an eye on the $0.51 level which is providing support for now.