- XRP/USD recovery capped by the psychological level $0.2000.
- Bloomberg's Mike McGlone believes that XRP exposure is a risk for Ripple.
Ripple's XRP hit the intraday high at $0.1997 as the cryptocurrency market resumed the recovery during early Asian hours. However, by press time, XRP retreated to $0.1977 to trade unchanged since the beginning of the day. Since this time on Sunday, the coin has gained over 1%. Ripple's XRP is the third-largest digital asset with the current market value of $8.7 billion and an average daily market trading volume of $1.8 billion.
XRP exposure threatens Ripple's cross-border payments venture
According to Bloomberg Intelligence Senior Commodity Strategist, Mike McGlone, Ripple has the potential to disrupt the cross-border payments industry; however, the volatile nature of the cryptocurrency market may slow down the Ripple's technology adoption.
In the recent Crypto Outlook report, McGlone commented:
Ripple Labs’ 2019 partnership with MoneyGram suggests markets still see the potential for disruption in cross-border payments, yet Ripple’s exposure to its own cryptocurrency threatens its enterprise software venture. The project’s investors, including Mastercard, Visa, Capital One, Citigroup and Bank of America, are likely just hedging.
He also added that banks and financial institutions would hardly be willing to adopt blockchain infrastructure solutions for large-scale clearing, settlement and payments unless they have common standards in place and approved by regulators.
XRP/USD: Technical picture
On the intraday chart, XRP/USD is supported by the middle line of the 1-hour Bollinger Band ($0.1963) and 1-hour SMA50 (currently at $0.1950). This support area is closely followed by 1-hour SMA100 at $0.1945. Once this thick layer of barriers is cleared, the sell-off may continue towards the psychological $0.1900 that has served as a lower level of the recent consolidation range since April 23.
The downward-looking RSI on the 1-hour chart implies that the price may retest this area before another recovery attempt.
XRP/USD 1-hour chart
On the upside, a sustainable move above $0.2000 is needed for the upside to gain traction. This barrier coincides with the recent consolidation channel and the upper line of the daily Bollinger Band. The next resistance is created by the 23.6% Fibo retracement for the downside move from February 2020 high at $0.2130. Once it is out of the way, the upside is likely to gain traction with the next focus on $0.2100 and $0.2175 (daily SMA100).
XRP/USD daily 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.