Technical Analysis and Market Entry: XRP/USD Bears May Take Another Bite
- XRP’s price remains weighted to the downside, given the firm control of the market bears.
- XRP/USD price action is moving within a bearish pennant structure, subject to a potential breakout south.
- Ripple continues to expand its exposure as an organization by announcing new partnerships with two top Japanese universities.
XRP/USD: Recent Price Behavior
The XRP price is moving within consolidation mode, following the beating it took from late June. XRP/USD has dropped some 45% within the last seven trading weeks. It fell from the heights of $0.5000 after failing to smash through this large psychological area of resistance. The price has not traded above that level since November 2018.
There was much initial promise in the bulls run higher for XRP, as the price behavior was giving the right signals. XRP/USD had been stuck within a very stubborn downward trend, where a tough acting descending trend line was forcing price rejections.
XRP/USD has been forced to retreat to a critical area of demand, which is seen down at the low $0.3000 mark. The price has not traded below the zone of $0.3000-$0.2500 range since December 2017. Should the bears manage to force a break and closure below via the daily time frame, this could cause large downside pressure.
Ripple Partners with Top Japanese Universities
Ripple has welcomed two Japanese universities to its University Blockchain Research Initiative (UBRI), onboarding new partners Kyoto University and the University of Tokyo. The expansion of its program now boasts some 33 participants, where they have committed $50 million toward the project to develop blockchain, cryptocurrency, and digital network programs.
SVP of Global Operations at Ripple Eric van Miltenburg said:
“University partners will continue to increase positive awareness of the transformative impact that blockchain technology will have across various industries. As the industry matures, the academic community plays a pivotal role in paving the road for innovative companies and entrepreneurs leveraging blockchain technologies and digital assets.”
Given the bearish technical structure, the odds appear to be in favor of seeing a breakout to the downside. In terms of targets to the south, the $0.2500 mark would be of much interest, i.e., the latter part of the demand zone in the $0.3000-$0.2500 range. Stops would be placed just above the pennant at $0.3300.
Should the bulls manage to force a daily breakout and closure above, then the bearish bias would be off the cards. The upside target near-term would then be for a return up to $0.4000.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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