XRP/USD focus shifts to $0.25, is Coronavirus giving back?

XRP/USD relentless flight to $0.50

  • Ripple’s On-Demand Liquidity transactions triple in Q4 2020 as XRP said to be the lifeblood of the network.
  • Ripple adoption grows as FINMA licensed crypto bank adds support for XRP.
  • XRP/USD rally takes a breather to retest support above $0.20 but eyes are on $0.5 before the end of May.

Ripple price was the first to break out among the top three cryptocurrencies this week. The third-largest digital asset soared above $0.20 critical level on Tuesday and for the first time in April extended the bullish leg to $0.22. Following the bullish wave triggered by Bitcoin (BTC) surge to $9,500, XRP/USD resumed the uptrend, grinding above $0.23. A weekly high formed at $0.2357 (marking the end of the bull-run) and giving way for a retaliatory move from the bears.

In the meantime, XRP has advanced from the recent dip to $0.2088 (previous day low). It is trading at 3.48% higher on the day with a market value of $0.2190. The prevailing trend is bullish and the volatility high as buyers remain in control.

Bitcoin and Ethereum are also in the green, adding 1.87% and 3% gains on the day. BTC/USD is trading at $8,784 after a gradual recovery from the previous day support at $8,400. Ethereum has a market value of $212 after adjusting upwards from an intraday low of $206.

Cryptocurrency Industry Overview: Ripple’s XRP sales dive to $1.75 million”

Ripple has released its usual quarterly XRP Markets Report. The report shows XRP falling to a new low, although its On-Demand Liquidity (ODL) payment network transactions tripled. ODL transaction volume surged by 294% from the previous quarter. In the report, Ripple referred to XRP as the lifeblood of ODL, especially in cross-border payments.

Consequently, XRP sales sunk from $13 million reported in the Q4 2019 to only $1.75 million in Q1 2020. The reduction comes after XRP holders called out the company for ‘dumping’ excess tokens on the market, which affects price performance. However, Ripple maintains that it cannot stay profitable without these sales.

Ripple’s XRP supported by Sygnum, world’s first crypto bank

Ripple’s adoption is likely to be boosted by the support XRP is getting from Sygnum bank, the world’s first crypto bank. The banking institution licensed by FINMA announced on April 30 that members of the bank have the freedom of investing in XRP tokens using the services platform. Users will have the rare opportunity of depositing XRP with the bank, buying and selling the token as well as utilizing credit facilities associated with the cryptoasset. The fiat currencies to be used in the purchase of XRP include the Swiss franc, the Singapore dollar, the US dollar and the euro. According to Mathias Imbach, Sygnum co-founder, the bank was particularly:

Impressed with Ripple’s excellent performance globally – they now have more than 300 financial institutions in their global payments network, RippleNet. The XRP-based solutions developed by the company resolve weak spots in the growing global remittance market of $ 700 billion. The low cost of transfers makes it an ideal tool to facilitate payments in emerging economies.

Ripple Technical Analysis: Has XRP/USD journey to $0.50 beginning

As mentioned Ripple took advantage of the buyer congestion above $0.20 to establish support at $0.2088 after the price retreated from the new April high at $0.2357. XRP/USD has once again launched another short term attack, targeting $0.30. Meanwhile, the price is teetering at $0.2194 while fighting with the resistance at a confluence formed by the 50% Fibonacci level taken between the last drop from $0.3468 to a low at $0.11 and the 200-day SMA.

It is apparent that the break above the above resistance will open the way for gains beyond $0.25. Interestingly, the action towards $0.50 will take advantage of the volatility and speculation surrounding Bitcoin block reward halving in less than two weeks. Besides, the current positive technical picture is likely to remain positive over the weekend session and into the following week. For instance, the prevailing technical picture is supported by the RSI upward motion as well as the bullish divergence above the MACD. In other words, bullish interest is at its peak and could spike on the account of Bitcoin halving.

Read more: Ripple Technical Analysis: XRP/USD gears up for another rally, $0.25 is the bullseye

XRP/USD price chart

XRP/USD price chart

 

 

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