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  • Ripple price settles above $0.2400 after a gruesome week where it touched levels around $0.2250.
  • Ripple chief Brad Garlinghouse maintains that XRP sales are the bloodstream of the firm’s profits.
  • XRP Ledger could soon allow the launching of asset-backed cryptocurrency tokens.

The entire cryptocurrency market led by Bitcoin (BTC) ended last week in losses and also kicked off this week’s trading in acute declines. The bulls across the board scattered into hibernation, allowing the sellers to have not one but several field days. The bleeding cryptocurrencies left most investors discouraged amid fears that the Coronavirus, COVID-19 was fast escalating into a global pandemic with increased infections outside of China and the fact that little progress has been made towards finding a cure or vaccine.

XRP/USD currently trading at $0.2424, has recovered significantly from a devastating dive to $0.2250. The recovery is in tandem with Bitcoin price surge above $9,100. The market is relatively bullish on Friday, ahead of the weekend session. Ripple price is trading 1.15% higher on the day while volatility remains high.

Tezos (XTZ) has been among the best performers on the crypto market as far as the top ten cryptoassets are concerned. The crypto has surged over 18% from the lows traded in February at $2.5250. XTZ/USD has a market value of $3.21 while still nurturing a bullish momentum that could eventually hit highs above $3.3.

Cryptocurrency Industry Overview: Ripple ‘dumping’ XRP to remain profitable

According to Ripple’s chief, Brad Garlinghouse, the company is unlikely to remain profitable without the monthly sales of XRP tokens. Ripple owns more than half of the pre-mined supply of XRP. The company offloads the coins it owns and sells them via an over-the-counter platform to institutional clients. The move continues to be criticized by many including XRP holders. Ripple has been blamed for flooding the market with XRP tokens that stifle performance against its peers. However, Garlinghouse recently told the Financial Times that the sales are necessary for the company to stay in the green.

We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.

Ripple’s business model has been showered with a lot of criticism in the sense that it hurts XRP price. Unfortunately, with billions of coins still in Ripple’s escrow wallet, the situation is unlikely to change in the near future.

RippleNet cross-border payments expand the UAE

The National Bank of Fujairah PJSC (NBF), a United Arab Emirates-based bank has this week announced that it will integrate Ripple’s RippleNet platform to settle cross-border payments for its customers. The service will also support NBF’s partnership with India’s IndusInd Bank to serve customers in India. NBF is positive that RippleNet will help stimulate and enhance the payment experience for the customers.

As for Ripple, the partnership means adoption for its services as well as expansion into new markets. Eventually, adoption of Ripple blockchain services will have a positive ripple effect on the price of XRP.

XRP Ledger could soon support asset-backed crypto tokens

Ripple is reported to be working towards the support of asset-backed digital tokens on its XRP Ledger. The move was revealed by the company’s CTO, David Schwartz who stressed that the support will be very different from what is already offered by other platforms in the industry.

One of the features that I think is very exciting is a feature that would allow people to launch… essentially assets pegged to some external value. Features similar to that exist on other systems but the interesting thing about this is that the liquidity is guaranteed by the ledger mechanics.

Ripple Price Forecast: XRP/USD navigates a turnaround

Ripple price is focused on ending this week in the positive despite starting on a rough patch. For starters, the price has corrected above a short term descending channel, which has contributed immensely to the gains made on Thursday and Friday. XRP/USD is also trading above the 38.2% Fib retracement level resistance turned key support at $0.24119.

Gazing into the near future, Ripple will require an extra dosage of bullish pressure to be able to rise above the resistances posed by the 200-day SMA at $0.25216 and the 50-day SMA at $0.25861. More seller concentration zones are expected to hinder XRP/USD recovery at $0.2600 (50% Fibo) and $0.2800 (61.8% Fibo). According to the RSI, XRP/USD could remain relatively bullish in the sessions heading into the weekend, however, very minor rapid movements north are expected. In the event of a reversal, other support areas include $0.2300 and $0.2200, respectively.

XRP/USD daily chart
XRP/USD price chart