Ripple [XRP] Price Analysis: Slips but gains against ETH, will $0.25 Hold?

The beauty of blockchain lies in its community. Vibrant and innovative, their combined objective is to see the space thrive even in the mid of stiff competition from individual projects.

Cooperation for XRP Adoption

Ripple has its eyes trained on remittance. Striving to make the cross-border transfers cheap and affordable for everyone, they continue to buttress their base.

Banks being their main competitor, Ripple also seeks to provide solutions for individuals. For this reason, there is XPring where projects can create interesting solutions that advance XRP.

In this arrangement, XRP is at the center and products are built for demand around the third-most valuable cryptocurrencies. Still, banks do play a critical part as rigid as they are.

Some financial institutions and payment processors are already using Ripple’s solutions while others are stuck with SWIFT’s–who are also continuously improving their processes faced with stiff competition from blockchain-based projects like Ripple and Bitcoin.

The Increasing Role of Stablecoins

Overly, the rise of stablecoins could clip part of Ripple market share and dwindle XRP’s utility.

With a total market cap exceeding over $11 billion, a Liechtenstein-based financial institution audited by Grant Thornton, Bank Frick, recently announced their support for USDC, a stablecoin pegged to the USD. This way, their clients could at any time send and receive funds using USDC.

Stefan Rauti, Head of Blockchain, commenting, said:

“With the addition of USDC, we enable our customers to process USD payments quickly and token-based. Compared to the classic SWIFT procedure, the processing time is significantly reduced. This underlines our claim to be the leading blockchain bank in Europe.”

Ripple Price Analysis

At the time of writing, the Ripple price is under pressure. Although it the coin is outperforming ETH in the last trading week, it is down against both BTC and USD.

From the daily chart, there are hints of weakness. Specifically, the support trend line no longer holds and most importantly, prices are trending below the 20-day Moving Average confirming the lower lows relative to the upper BB of the last 10 days of trading.

Nonetheless, every low may be a buying opportunity especially if prices don’t break below the minor support trend line of the bull flag confirming losses of Aug 18 to 21.

Any sharp break below the support trend line with increasing trading volumes exceeding those of Aug 17—data from Bitfinex, could see XRP prices fall to $0.25.

On the flip side, a sharp close above the 20-day moving average—the immediate resistance level, will be the foundation for further gains towards this month’s highs of around $0.31.

Chart courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author. This is not investment advice. Do your research.


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