Ripple XRP has been on an upward trend, starting from June 7th when its price was $0.17, gaining a massive 87 percentage point at its peak. However, the last few days have shown the cryptocurrency losing the bullish momentum and trading sideways, a clear indication that it may be reversing.
Ripple XRP Daily Chart technical analysis
Ripple’s upward momentum saw resistance for its continued bullish trading at $0.32 on August 2nd, before the market corrected with a 14 percent drop to $0.27. The crypto has gone on to trade sideways between the two ranges, with the prices returning to $0.32 area and retesting the resistance level on August 17th.
The support and resistance levels that the crypto has been trading within, in the last few days, however, will not hold, and the crypto will have a breakout outside of the support and resistance levels. Technical analysis on the daily chart, however, shows that a reversal is imminent and the breakout will be to the downside. This becomes much more clear when the lower time frame is used to determine where the market may be heading.
Ripple XRP One hour chart technical analysis
The one-hour charts indicate is able to show how the crypto has been trading within the support and resistance levels for the last few days.
On August 17th, the one hour chart shows that the crypto started its bearish move, forming a descending channel. Currently, the price have touched on the upper trendline of the channel which has acted as a resistance level.
The market is expected to continue playing within the descending channel and the next big move will be a bearish move towards the lower trendline of the channel. All indications show that the prices will move towards the resistance level of $0.27, before an anticipated breakout to the downside.
Ripple XRP as a bridge asset in international settlement
Generally, bitcoin and altcoins continue to correct but lower levels are likely to attract buyers as the bullish macro trend has not changed. Emi Yoshikawa, senior director of global operations at Ripple, claimed that XRP does not compete either with central bank digital currencies (CBDC) or stablecoins. On the misimpression that XRP is challenging other altcoins, she says:
There are various types of crypto assets, but I think that the role of XRP as a bridge asset in international settlement, and is not competing with stablecoins or CBDC, but on the contrary, is complementary. We believe that various stablecoins and CBDCs will create synergy by responding to the liquidity problem by bridging independent crypto assets, XRP.