XRP Price Analysis: XRP/USD Breakout Out is Now Retesting Wedge Pattern Formation

  • UAE Exchange and Unimoni joins the ever-growing list of institutions to leverage Ripple technology.
  • XRP/USD broke out and is now retesting a wedge pattern formation.

Recent Price Behavior

XRP/USD has been cooling of late, with the past three sessions having closed in the red. This comes after the bulls failed to sustain the big chunky upside momentum, which was seen on 8th February. The price had jumped around 10%, where it saw a daily close above a descending wedge formation.

The bears are pushing the price once again towards a large area known to attract big buyers. This can be observed around the $0.3000 mark, tracking right down to $0.2500. As seen on several occasions in 2018, big bull momentum has come into play from these levels.

Ripple Payment Network Adds UAE Exchange and Unimoni

Additional payments institutions will be leveraging Ripple’s blockchain technology, as per the latest announcements. This time the news comes from the United Arab Emirates, where Finablr, a global payments platform and foreign exchange organization, has announced it will be partnering with Ripple.

In a press release on Monday, Finablr detailed that its network brands and UAE exchange Unimoni will be joining RippleNet, where they will leverage blockchain technology to power real-time transactions to Thailand.

Furthermore, the UAE based payments company noted that it is looking to expand on its services to other countries in the future. Other than UAE Exchange and Unimoni, Finablr also owns the likes of Travelex, Xpress Money, Remit2India Ditto and Swych. They will be keen to leverage blockchain technology across some of their services too, according to the company’s announcement.

The Finablr CEO Promoth Manghat commented on the newly released details to use Ripple technology. He said, “The adoption of blockchain opens up considerable potential to streamline remittances and provide a frictionless, fast and secure payments experience.”

Technical Review – XRP/USD

XRP/USD daily chart.

XRP/USD is currently in the state of easing to the south. It is currently playing out to the textbook with the breakout and retest of the wedge pattern formation. If the upper part of the breached wedge is able to hold and withstand the bearish momentum, then a greater wave of buying could be seen.

The upper trend line of the wedge can be observed tracking at the big psychological $0.3000 price mark. This coincides with the big demand area as previously noted, which is seen from $0.3000 down to $0.2500 initially. Should the above-detailed support hold, then the first target area for the bulls will likely be $0.3500.

Looking further to the north, a chunky amount of supply can be seen within the $0.4000 price region. XRP/USD has faltered here on countless occasions, as it is an area that has notoriously plagued the bulls from greater upside. Breaking down this zone is the major key for a reclaim of the big $0.5000 level. The price has not traded up at these heights since 20th November 2018.

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.

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.