Ripple Weekly Forecast: XRP/USD journey to $0.30 in May begins

Ripple was not the best-performing cryptocurrency among the top thirty coins in 2019 and the first quarter of 2020. Besides, some have called it out for lagging behind every bullish price action in the market but falling with a margin during bearish moves such as the one in mid-March; XRP/USD spiraled to $0.11 as Bitcoin dived to $3,800. However, while Bitcoin has recovered to levels above $7,500, XRP/USD is stuck under $0.20.

At the time of writing, Ripple has a market value of $0.1955. Bulls have tried to throw jabs at $0.20 resistance but the seller congestion in this zone is not wavering. On the downside, an intraday low has been traded at $0.1926 and currently functioning as the key short term support.

Also read: Cryptocurrency Market Update: Bitcoin mooning to $5 million in just 5 years

Cryptocurrency market update

The entire cryptocurrency market update is mostly in the green. Recovery on Friday is led by NEO, after advancing 4.35% higher. In the last 24 hours, Cardano (ADA) has surged over 18% to trade at $0.0437. Tezos (XTZ) is also performing well with gains reaching 13.74% in 24 hours. Other cryptocurrencies at the forefront of recovery include Stellar (XLM) with a 9.26% growth, MINDOL with gains of more than 11.34%, and Monero (XLM) 7% spike in the last 24 hours.

Cryptocurrency Industry Overview: XRP dwarfs Bitcoin and Ethereum in environment sustainability

A report published by Ripple on the Earth Day anniversary explained how continued printing of money in the form of banknotes is detrimental to the environment. The blockchain company also took the time to explain how various cryptocurrencies are environmentally sustainable as well as their impacts on the environment. Ripple reckoned that deforestation in support of a paper system of money is dangerous over time because “it’s estimated that the average lifespan of a $5 bill is only 16 months.”

At the same time, metal physical coins present harsher conditions for the environment due to pollutants emitted during the mining process as well as the high energy costs involved. A more sustainable approach is the use of debit cards and credit cards for the traditional banking system as their lifespan is at least eight years.

While cryptocurrencies present a better alternative to banknotes in terms of preventing deforestation, some digital assets are still harmful. For instance, the proof of work (PoW) used by Bitcoin and Ethereum in mining coins requires a colossal amount of energy because “the cost of producing one coin could power almost four U.S. homes for a day.”

On the contrary, XRP requires a relatively lesser amount of energy to function, presenting a better alternative and is “one of the most sustainable forms of currency available”. Ripple stated that:

Unlike Bitcoin or Ethereum, XRP is not a mined digital asset. Every unit of currency that exists now has already been created … XRP is an incredibly efficient and sustainable form of currency.

No reprieve for XRP holders as escrow sales could last two decades

Ripple has the chunk of the XRP tokens stored in an escrow account, precisely 55 billion. Since the launch of the digital asset Ripple has sold at least 1 billion XRP every month. XRPArcade, a ripple-related publication says that these sales could go on for over 20 years. The publication says that it is not possible to sell all the tokens in 55 months. Besides, the company said in 2019 that it had cut down on the number of XRP tokens sold quarterly.

Ripple price poor performance in 2019 and part of 2020 has put some XRP community members on the edge. They say that the sale of the tokens distorts the growth curve of XRP. However, Ripple has ignored such comments saying that it has no influence over the price of XRP and that the sales are necessary for the company to remain profitably.

Ripple Technical Picture: XRP/USD breakout above $0.20 could rally to $0.30

Ripple price has remained relatively stable in April following the recovery from March lows. While movements north have not been sustainable beyond $0.20, formidable support has been established at $0.18. The break above the 50 SMA recently pulled XRP upwards but selling pressure at $0.20 still stands in the way. However, the Bollinger Bands in the daily range clearly show that Ripple is gradually grinding into a rally especially with the step above the 50-day SMA.

Consolidation is expected to take precedence between $0.18 and $0.20. At the same time, Bitcoin’s halving in May is expected to introduce volatility across the market and coupled with a technical breakout above the 38.2% Fibonacci level of the last swing high at $0.3484 to a swing low at $0.11, XRP/USD will set on a journey towards $0.30. Meanwhile, the downside is supported by the 50 SMA at $0.18, $0.16 as well as $0.14.

Read more: Ripple Price Analysis: XRP/USD recovery hits $0.20 barrier, are the bears winning?

XRP/USD daily chart