Ripple Weekly Forecast: Why XRP/USD bottom eyes $0.05 mid-2020?

  • Ripple price is not done with the downfall; could plummet to $0.05 before finding a long term bottom.
  • The Bank of France Explores Ripple and Ethereum as potential blockchain power for central bank digital currencies (CBDCs).
  • A Ripple engineer and his team make private transactions on XRP Ledger a possibility.

Ripple has remained relatively bullish from Monday this week following a breakdown over the weekend. XRP/USD refreshed the levels around $0.16 before focusing on recalling the ground towards $0.20. Several milestones have been achieved this week including a spike above $0.18. A weekly high has been formed at $0.1878 but Ripple price has adjusted lower to the market value of $0.1804.

All the top three cryptocurrencies are in the green led by Bitcoin’s 1.40% growth (trading at $6,892) on the day and followed closely by Ethereum’s 1.38% (exchanging hands at $143). Ripple is up 1.27% after advancing from an opening of $0.1785.

Cryptoassets such as Monero are outperforming the major coins with gains exceeding 4%. Dash is up 2.92% to trade at $53 while Bitcoin Cash has added 2.06% on its value and trading at $237.

Cryptocurrency Industry Overview: Could Ripple and Ethereum power CBDCs?

The central bank of France is carrying out a feasibility study to answer the question of whether Ripple and Ethereum could power central bank digital currencies (CBDCs)? This is part of larger research looking into a possible rollout of a digital currency backed by the Bank of France. Participants have been invited to contribute to the study that seeks to identify economic benefits as well as potential use cases for the digital currency. The Bank of France, in a report released internally, highlighted both Ethereum and Ripple as cryptoassets the bank could utilize to tokenize a national digital currency. The report reads in part:

Since the attributes of a unit of the wholesale CBDC (file representing the currency unit, keys enabling use) may be integrated in a cryptoasset circulating on another blockchain, which is possible on Ethereum and Ripple, for example, it would then become possible to use the unit on this blockchain.

Ripple’s progress with commercial banks and other central banks around the world using its flagship products, RippleNet and On-Demand Liquidity (ODL) already been interpreted to have potential conversion features for CBDCs. Exposure such as this with the central bank in France will positively impact Ethereum and Ripple’s mainstream adoption.

XRP anonymous transactions no longer a mirage

According to a GitHub submission made earlier in the week, a team lead by Ripple Engineer Nik Bougalis has come up a new payment system that allows users to withhold their identity while using XRP Ledger for transactions. The move is to protect XRP users from malicious third parties. The system utilizes “blinded tags” to make private transactions a reality. A string of numbers is presented to the recipient who finds them meaningful but they remain random to other people.

Ripple Price Forecast: XRP/USD Grinds closer to $0.20

Ripple price is trading between the support and resistance of the moving averages in the 4-hour range. The 50 SMA is positioned to offer support in the case of a drop under $0.1750 while the 200 SMA hinders movement at $0.1850. The RSI shows the short term trend is in favor of the bulls, which could encourage buyers to increase their entries, pulling XRP/USD above $0.20. The bullish bias is supported by the MCAD in the same 4-hour range.

On the flip side, the price is trading within a bearish pennant pattern likely to culminate in losses towards $0.15 unless Ripple defiantly rises above the resistance at $0.20. Other support areas apart from the 50 SMA are $0.1750, $0.1600, $0.1500 and $0.1400.

XRP/USD 4-hour chart

XRP/USD price chart

Trader predicts Ripple’s downfall to $0.05"

A cryptocurrency analyst and trader on Twitter, ‘il Capo Of Crypto’ was bashed by many when he predicted that XRP would lose 50% on its value from $0.27 to levels between $0.13 and $0.15 in February. However, XRP went ahead to dump more than that testing $0.01 on March 12 amid the COVID-19 triggered cryptocurrency selloff.

The same trader has come back with another bearish prediction saying that he believes that the Elliot Wave Correction could lead to another freefall targeting $0.08-0.09. He added that this lower leg could extend to $0.05-0.06 in order to give XRP/USD a long term bottom mid of 2020.

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