Ripple’s XRP: Grinds lower in a bear channel
|- A recovery was rejected at $0.4 as the bullish trend turned bearish.
- Ripple and NEM Foundation collaborate to form “Blockchain for Europe.”
Ripple’s XRP opened the week’s trading grinding lower. The price has been forming lower highs and lower lows for the path three days. The hourly range chart shows a descending channel that has formed. A recovery was rejected at $0.4 as the bullish trend turned bearish with a bounce towards the channel support at $0.33.
A support can be observed in the mid-section of the channel, however, the bears are likely to push the price further south. The 100 SMA in the same range is below the 200 SMA to show that the asset is likely to move south as opposed to correcting higher in the near-term.
On the other hand, the relative strength index (RSI) has revamped the trend after XRP bounced from the lows at $0.3417 (intraday on Wednesday). If bulls play their cards right, XRP/USD could break the channel resistance and deal with the 100 SMA hurdle at $0.36. The MACD is in the negative region but relatively higher compared to the levels on Tuesday. This shows that there is a bullish pressure signaling a reversal.
Ripple’s XRP has been one among the few coins that have weathered down the bear pressure in the market remarkably well. However, this is not to say that it has been in immune to bears' teeth and claws. The asset is sitting comfortably in the second position in the market after it zoomed past Ethereum. Various experts and Enthusiasts say that XRP has the potential to displace Bitcoin as well.
Still related to Ripple, the blockchain solutions provider in collaboration with NEM Foundation have made a pact to form a regulation association for the Europe region referred to as “Blockchain for Europe.” Ripple is working to ensure that it regulators view blockchain and cryptocurrencies positively and not as a threat. Remarks by one of Ripple’s heads states:
“Ripple is delighted to be a founding member of Blockchain for Europe. This is a critical time for policymakers in Europe as they seek to develop the right regulatory framework to capture the benefits of both digital assets and blockchain technology”
XRP/USD 1-hour chart
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