XRP Price Analysis: XRP/USD Behavior Suggests of One More Deep Pullback

  • XRP/USD price action is moving within a range-block, subject to an extended move lower.
  • American Express are singing praises above the speed of Ripple’s technology.

XRP/USD price has stabilized, after the renewed chunky wave of selling pressure that hit the market. The price last week was forced to drop a whopping 30%. This came following a period of consolidation, which commenced on 25th November. XRP had managed to gain some firmer footing, after the brutal November selling. However, from a technical observation, the price entered into a range-block, which was subject to an extended move lower. Over the past three days, similar behaviors are noted, which expresses vulnerabilities.

American Express Praises the Speed of Ripple’s Technology

Back in November 2017, news hit the wires of a partnership between American Express, Ripple, and Santander Bank. Earlier this year, an official confirmation of partnership between Ripple and American Express was announced. This includes Santander Bank, and promises a solution which will offer fast speed and lower cost cross-border transactions. American Express had detailed using Ripple’s xCurrent technology to facilitate payments.

The general manager of American Express’ corporate payments, Carlos Carreido, was recently speaking at a conference called the Wings of Change Europe, which was held in Madrid. He detailed the incredible capabilities with the use of Ripple’s blockchain technology. As a result, the performance making a large difference for them, in payment processing globally.

Carlos Carreido said, “Blockchain is absolutely an option we’re looking at. Just to give you a sense, we have invested in a fintech lab, based on blockchain technology, just to understand how to leverage this better. We did a pilot. We did a test, partnering with Santander locally, and with Ripple to just do cross-border transactions. Cross-border transactions continue to be complex and slow. And in a matter of seconds, through this test, our clients were able to transfer funds in a very transparent and seamless way, from one part of the world to the other one.”

Technical Analysis: XRP/USD

XRP/USD 4-hour chart

Since the 7th December, XRP/USD has once again found firmer footing. The price managed to bounce most recently within the $0.29 territory. Danger to the downside is still very much at large. Similar behaviors that were seen between 25th November to 5th December, are being observed. This was a period of consolidation ahead of another deep fall. XRP/USD is moving within a range-block. The upper part of this seen at $0.3300, and current downside capped around the $0.2950 area.

Downside Targets

XRP/USD daily chart

Keeping the above in mind, XRP/USD could be set for another drop lower. This would fall in line with the previous article via Hacked. One more deep move lower, before the big bull buying comes into play. The price is already in proximity to this demand area but could be forced further towards the $0.2500-$0.2000 range. As previously mentioned, historically this is the area that sees bulls come in by quite some force.

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.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.