- The cryptocurrency market outlook has improved significantly this week compared to last week.
- Ripple breaks barriers with its cross-border blockchain payment solutions; RippleNet and On-Demand Liquidity.
- Ripple price ability to defend $0.30 support could determine the run-up to new 2020 highs above $0.40.
The cryptocurrency market has been on an upward roll since the beginning of the week. The bulls have not been afraid to flex their muscles with some stamping their feet on the bears. Ripple and other major cryptoassets jumped above critical barriers to form new 2020 highs. In particular, XRP gained incredibly from last week’s support at $0.28, advancing above $0.30. A new high was formed marginally below $0.35. Bitcoin closed in on $10,500 while Ethereum clocked $275 before correction took over.
Cryptocurrency industry overview
Ripple’s 12% growth this week can be attributed to several factors including the partnership with the National Bank of Egypt (NBE). The bank became the first financial institution in the country to join RippleNet with the aim of tapping into the cross-border solutions provided by Ripple. NBE also happens to be the oldest bank in Egypt and described the partnership as “the first of its kind” among the commercial banks in the nation. The bank finds the move to be groundbreaking; providing a getaway to the more than 300 partners within the RippleNet network.
The impressive performance was also bolstered when Bitcoin was mentioned second in a list of the largest fintech firms in America. The 2020 list released by Forbes placed Ripple second at a valuation of $10 billion. Coming in the first spot was Stripe, a company that concentrates on enabling businesses to accept online payments. The largest exchange by trading volume in the US, Coinbase came third with a valuation of $8.1 billion.
Barely a day after the Forbes’ list, XRP landed support on BRD wallet as well as Blockset. The support on BRD is important for XRP, particularly because, the wallet has been identified as the fastest-growing consumer crypto-wallet and is said to have a presence in more than 170 countries. On the other hand, Blockset is a blockchain integration platform developed by BRD to assist “developers with access to the XRP Ledger as they build their applications.”
Banks shun the zero-tolerance stance on crypto
Banks have for a long time, been taking a zero-tolerance approach towards cryptocurrency. However, it appears that the stance is becoming less rigid across the world. Banks are taking up more crypto solutions especially Ripple’s RippleNet and On-Demand Liquidity (ODL). Continued openness to crypto and especially Ripple’s financial solutions is bound to increase the demand for XRP and lead to growth in the future.
The most significant entrant in the crypto industry being US fourth-largest bank, Wells Fargo. The bank has invested $5 million in a crypto risk management firm, Elliptic. The investment was part of a Series B round that saw the firm raise $28 million to help push its flagship product, Elliptic Discovery.
XRP/USD: Technical picture
Following the surge to new 2020 highs at $0.339, XRP embarked on a gain-trimming exercise. The selling pressure forced XRP under the short-term support at $0.32 and extended the action towards $0.31. An ongoing recovery has reclaimed support at $0.32, allowing the bulls to once again take their focus back to $0.35.
From a technical perspective, Ripple is likely to continue taking a breather between $0.30 and $0.35 in the next few days. The RSI’s ability to stay within the overbought region will ensure that the bulls remain largely in control. Similarly, the MACD features a bullish divergence at +0.0255, which cements the bulls’ position on the market.
For formidable upward advancement, the buyers must bring down the resistance at the 50% Fib retracement level, taken between the last drop from $0.51 to lows at $0.1768. In addition to that, a channel resistance formed since the beginning of January must come out of the way.
As far as support areas are concerned, the 38.2% Fibonacci level (marginally above $0.30) will try to hold the price above $0.30). Other key support areas range from the ascending channel support, the 23.6% Fibo at $0.25 (forming a confluence with the 200-day SMA), the 50-day SMA at $0.2361 and $0.20 as the last resort.
XRP/USD daily chart
In terms of resistance and support areas, the confluence detector places the first hurdle at $0.3275. Movement above the seller congestion zone must for more selling activity at $0.3376. The journey to new yearly highs above $0.4 could also be limited at $0.3543. Ripple is supported in the same measure as it is resisted. The first confluence support is $0.3208 while the most significant support is seen at $0.3007. If losses progress under $0.30, $0.2974 support will come in handy.
More confluence levels