Ripple price analysis: XRP/USD stays below $0.40, vulnerable to further losses
|- Ripple's coin has been moving down in sync with the market.
- Ripple's CTO says that the world is not ready for blockchain.
XRP/USD is hovering below $0.4060, having recovered from the recent low of $0.3868. The third largest coin with the current market capitalization of $17.0 billion managed to settle above the critical $0.40 handle; however, the upside momentum is too weak to allow for an extended recovery. XRP/USD has lost over 3% of its value since this time on Monday, moving in sync with the rest of the market.
Looking technically, the inial barrier is created by SMA50 (Simple Moving Average) 1-hour at $0.4050. Once it is out of the way, the upside is likely to gain traction with the next focus on $0,4100 strengthened by SMA100 1-hour. The ultimate resistance awaits on approach to psychological $0.4200 with SMA50 on a daily chart just below that handle.
On the downside, A strong barrier lies with $0.40. Once it is cleared, the sell-off is likely to gain traction with the next focus on the recent low of $0.3895.
Meanwhile, the chief technical officer of Ripple Labs David Schwartz believes that the world is just not ready for blockchain. While xCurrent and xRapid technologies can solve the problems of slow and costly transactions, banks and large financial institutions are in no hurry to jump to it as they are too conservative and rigid, according to Ripple's CTO.
Among other roadblocks on the way to blockchain mass adoption, he mentioned regulatory uncertainty, thin liquidity and immaturity of the cryptocurrency ecosystem as a whole.
XRP/USD, 4-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.