Ripple Rejected at $0.7500 – Who’s up for a Sell Trade?
Arslan Butt•Thursday, January 20, 2022•3 min read
- Binance announced the debut of Wrapped XRP (wXRP) on Monday
- On the lower side, the XRP/USD may find immediate support at 0.7310
- Ripple faces strong resistance at the 0.7500 level, which is being extended by a double top pattern
During the Asian trading session today, the
XRP/USD coin extended its early declining streak, and remained well offered around the $0.7400 level. Since November, when it hit highs of $1.34, XRP has been on a severe downturn. The bears took over the $1 region in the weeks that followed. At the time of writing, XRP/USD was trading at $0.77, close to the 9-day moving average. The
cryptocurrency is now trading sideways, unable to break through the 21-day moving average. As a result, the bulls are battling to control the market momentum, as evidenced by the attempt to drive the coin to the upside. The $0.80 resistance level is the nearest level of resistance from above. Any further gains might push the price above the $0.85 mark, which is a key resistance level. Higher
resistance levels could be seen at $0.90, $0.95 and $1.00 if the Ripple price breaks above this level.
Ripple Live Rate
In the meantime, if the price falls below the 9-day moving average, the nearest level of support is at $0.70. Under this, supports of $0.65, $0.60 and $0.55 could be found. However, as numerous developments emerge in the Ripple network, the price losses in Ripple could be short-lived. It is worth noting that Morocco’s largest banking service provider, Attijariwafa Bank, has joined RippleNet. The latter is a transnational cross-border payment network created by Ripple, a blockchain corporation based in the United States.
Binance announced the debut of Wrapped XRP (wXRP) on Monday, marking one of the company’s boldest moves yet toward enhancing cross-chain functionality and interoperability. Binance has finished the wXRP integration and opened wXRP deposits on Ethereum (ERC20). Please see the Deposit Crypto page for your allotted XRP deposit addresses on the Ethereum Network (ERC20). The announcement reads as follows: “While wXRP will be available for deposits, withdrawals on the Ethereum Network (ERC20) will be delayed until a later date to be disclosed, according to the exchange. wXRP deposits would be credited and sold in the same way as XRP.”
Furthermore, the bullish bias in the US dollar aided the decline in XRP prices, undermining the XRP/USD currency. On the day, the broad-based US dollar remained well bid, as investors braced for a widely anticipated interest rate hike in March. As a result, one of the primary variables that held the XRP/USD coin lower was the strength of the US dollar. The Federal Reserve will meet next week, and it is expected to provide additional clarity and details on the end of quantitative easing, which is set to take place in March. In addition, the Federal Reserve of the United States may signal that interest rates will be raised in March, shortly after QE is completed. Meanwhile, the gains in the dollar were bolstered by data indicating that home-building in the United States increased surprisingly in December, according to figures. Last month, the seasonally adjusted annual home-building starts increased by 1.4 percent, to 1.702 million units.
Ripple (XRP/USD) – Technical Outlook
Ripple faces strong resistance at the 0.7500 level, which is being extended by a double top pattern. The closing of candles below this level supports Ripple’s chances of a selling trend. The XRP/USD has formed a Doji candle under the 0.7500 level, signaling an indecision bias among investors. When such a candle is formed after a bullish correction, it can drive a downtrend in the XRP/USD price.
On the lower side, the XRP/USD may find immediate support at 0.7310, and a break below this could expose Ripple to the 0.7230 level. On the higher side, a breakout at the 0.7500 level could drive an uptrend until 0.7700 or 0.7915. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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