Ripple Price Analysis: XRP/USD erased the gains of the previous rally

• MoneyGram chooses Visa over RIpple for its new payment service.
• XRP/USD returns to the previous consolidation range amid strong bearish pressure.

Ripple’s XRP has been collapsing for three days in a row. The massive sell-off caused by a global correction on the cryptocurrency market wiped out all the gains of the previous week and pushed XRP/USD below $0.2700 on Sunday. At the time of writing, the coin is trying to settle above $0.2800, however, an upside bias remains weak. XRP is down 10.5% on a day-to-day basis, and 4.6% since the beginning of Monday. Ripple’s current market value is registered at $12.2 billion, while an average daily trading volume amounts to nearly $4 billion in line with the figures of the previous days. 

MoneyGram chooses Visa over Ripple

Remittance services provider MoneyGram launched FastSend, a new service that will allow users to send to a mobile phone number in real-time. However, the company don’t use Ripple’s blockchain and cryptocurrency solutions for that purpose. Instead, FastSend utilizes Visa’s Direct Original Credit Transaction to deposit funds to users’ bank accounts, Kamila Chytil, MoneyGram Chief Operating Officer explained in an interview with Cointelegraph.

This choice of the technical solution may be disappointing to XRP supporters, but, according to Chytil, the company believes in blockchain potential and utilizes Ripple’s solutions at a corporate level to reduce its operational costs.

XRP/USD: Technical picture looks bearish

XRP/USD is hovering around $0.2800 with the local support created by the middle line of the daily Bollinger Band at $0.2760. If it is broken, the downside momentum will gain traction and push the price towards $0.2700 with the recent bottom at $0.2696. The next major support comes at $0.2650, which is a lower boundary of the previous consolidation channel and $0.2550 (SMA200 daily).

On the upside, a sustainable move above $0.2900 is needed to mitigate the initial bearish pressure. Once it is out of the way, a stronger psychological resistance of $0.30 will come into focus. It is reinforced by SMA200 1-hour and the upper line of 1-hour Bollinger Band.

XRP/USD 1-hour chart