- Line of Credit allows RippleNet’s customers to get easy and fast access to XRP.
- XRP is currently facing massive resistance at the 50-day SMA, inhibiting its growth to the $0.31-level.
Problems solved by Line of Credit
Fintechs and small and medium enterprises (SMEs) struggle to compete with large companies due to a lack of capital and resources. Historically speaking, this lack of access to working capital has been the biggest barrier to scale and growth for these companies. The only option they have left is to arrange for customized credit arrangements that can turn out to be quite cumbersome.
Ripple’s Line of Credit solves these issues by providing easy access to capital for every market with a simple credit arrangement. This significantly reduces barriers to scale and allows SMEs to properly compete with the big boys.
Ripple’s main aim is to enable the Internet of Value and break down obstacles in finance. Line of Credit, which has already been piloted by Ripple Net Customers, empowers financial institutions and money service providers to provide their customers with affordable and real-time cross-border payments consistently.
XRP/USD daily chart
XRP/USD is currently trading for $0.25 and is sitting in an interesting position in the daily chart. The cross-border remittances token has been long trending in a descending parallel channel. The price is currently sandwiched between the channel's upper boundary (which presently coincides with the 50-day SMA curve) and the 100-day SMA curve. The MACD shows sustained bullish momentum, allowing the buyers to break above this channel and push the price up to the $0.31 resistance line.
However, XRP has experienced repeated rejections at the upper boundary/50-day SMA, which may prompt the bears to shift gears and break XRP below the 100-day SMA curve. If the price does break below that, the next healthy support lies at the 200-day SMA ($0.22). Further down, the next healthy support lies at the parallel channel's lower boundary at $0.20. To add further credence to this bearish hypothesis, let’s checkout Santiment’s Holder Distribution graph.
Santiment Holder Distribution
A worrying some for Ripple is the action of the whales over the last one week. The number of XRP holders with 1 million - 10 million tokens went up from 1,332 to 1,338, before falling back to 1,332. In the same time frame, the number of holders with at least 10 million XRP dropped 313 to 310. So, it looks like the whales are selling off their tokens, which makes sense as to why XRP is getting repeatedly rejected at the 50-day SMA.
Verdict: If the buyers take charge and break above the 50-day SMA, they will push the price up to $0.30, encountering the next strong resistance. On the other hand, repeated rejections at this critical juncture will drop XRP down to the 200-day SMA ($0.22).
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