Ripple price analysis: XRP/USD declines add sorrow to a gloomy market; Japan getting ready for 6 new cryptocurrency exchanges
|- The FSA has already licensed 16 crypto exchanges, while 8 more applications are under review.
- Ripple price is correcting lower on the day, down 5.72%, but the major support is at $0.500.
Ripple price has extended declines below the former major support level at $0.60. The crypto is trading at $0.56 and is down 5.72% on the day. The price is approaching the lows traded in the last week of March and the first week of April. There is a bearish trend on the 4-hour timeframe chart threating to test the short-term support area at $0.55.
Japan decided to regulate activities in the cryptocurrency market as opposed to banning the digital assets. This has been achieved through the Financial Services Agency (FSA) which has up to date licensed 16 crypto exchange platforms. There are 8 more exchange platforms whose applications are being reviewed at the moment. The eight have applied to be considered for trading Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Litecoin (LTC). The soon to come crypto exchange platforms in Japan include Drecom, Money Forward, Yamane Medical Corporation, Securities Group and Avex. A chartered accountant, Shubham wrote on Twitter:
“Sbi vc is coming soon! Xrp will rule the world after xrapid will launch! It’s just beginning of good days. Xrp community and ripple team will remember forever for this technology!”
Ripple is trading below the 50 SMA and the 100 SMA, moreover, the moving averages show that a continued bear dominance is expected in the near term. Furthermore, the RSI is pointing downwards below the 30 mark, while the Stochastic is moving deeper into the oversold region. The descending trend line is limiting the gains to the upside, but the 61.8% Fib retracement level with the last swing high of $0.93 and a low $0.46 will offer resistance towards $0.65. If the support level at $0.55 fails to stop declines, the major support zone at $0.500 will be very instrumental.
XRP/USD 4-hour chart
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