Ripple Weekly Analysis: XRP/USD relentless until $0.20 is conquered
|- Ripple price steps above $0.1745 resistance in a stable cryptocurrency market; eyes glued on $0.20 psychological level.
- Ripple donates $200,000 to aid in the fight against the COVID-19 pandemic.
- Ripple potential collaboration with central bank digital currencies could catapult it to the helm of cross-border payments.
Ripple price is struggling to erase several weeks of underperformance amid a stable cryptocurrency market. From a monthly low around $0.1080, XRP/USD has zoomed higher to test the hurdle at $0.1800. An intraday high of $0.1803 has been achieved on Friday. However, Ripple has adjusted downwards to $0.1717 during the European session.
The larger cryptocurrency market is in the red. Bitcoin price has spent the entire week focused on breaking the hurdle at $7,000 but gains have been unsustainable above $6,900. Meanwhile, BTC/USD is doddering at $6,692 while the trend is bearish and the volatility expanding.
Ethereum price has not been spared the cut with losses amounting to 1.56% on the day. The selling activity at $142 is making the buyers lives unbearable as their efforts are watered down into retracement towards the initial support at $135.
Industry Update: Ripple is determined to win the fight against COVID-19
Ripple has made headlines this week with the donations the company made towards the fight against the Coronavirus pandemic. The company was among the first to adjust to a remote working strategy for its employees. Ripple said that the well-being of its staff is a priority.
Going beyond the remote working strategy, Ripple donated $200,000 to a couple of funds in the United States; Tipping Point Community and Silicon Valley Community Foundation. The funds have been split in half for the two organizations.
Ripple’s adoption to grow with Thailand’s Siam Commercial Bank integration
Thailand’s Siam Commercial Bank (SCB) is in the process of developing a payments application that will utilize Ripple’s technology to allow tourists to pay for goods and services without the need to do a currency conversion. SCB is not new to Ripple as it had already launched SCB Easy, a platform that utilizes Ripple’s cross-border money transfer solution, RippleNet. Arthit Sriumporn, the senior vice president of commercial banking at SCB said in a statement:
Tourists simply scan the QR code to pay for something instantly without dealing with exchange rates or having to carry around large amounts of local currency.
It’s something new in the market that will change the tourism landscape and make lives better.
Ripple head-to-head with Swift
Ripple’s partnership with MoneyGram has been in the spotlight for a while now. MoneyGram has reported over $11 million in revenue made from the sale of XRP tokens. More payment corridors are likely to be launched in the second and third quarters of 2020.
From the beginning, Ripple presented itself as a worthy opponent of SWIFT. Both RippleNet and On-Demand Liquidity (ODL) blockchain solutions have already been adopted by various leading banks around the world. Some central banks have also adopted Ripple’s infrastructure.
The future of international money transfers could very well be tied to Ripple. As central bank digital currencies (CBDCs) emerge, Ripple would be a platform they can depend on for the transfer of value as well as conversion. A move that could see Ripple's adoption surpass SWIFT.
Ripple Price Forecast: XRP/USD $0.20 is the bullseye
After stepping above the 23.6% Fibo of the last drop from $0.3468 to a low of $0.1086, Ripple is focused on clearing the hurdle at $0.20 in the coming few days. This week’s trading has been relatively bullish compared to the previous week where XRP mainly confined in a range between $0.14-$0.15.
XRP/USD climbed above $0.1745 but failed to conquer the resistance at $0.18. The RSI retreat from the average (50), shows that Ripple is unlikely to tackle this resistance. Initial support is established at $0.17 while other key support areas include the trendline, $0.16 and the zone between $0.15-$0.14.
Higher support at $0.17 would allow the bulls to focus on pushing above $0.20 and tackle the confluence resistance created by the 38.2% Fibo, the 50-day SMA and the 100-day SMA at $0.2277. A calm weekend session is expected in readiness for a rally early next week.
XRP/USD daily chart
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