Ripple Price Analysis: XRP Hovers Around The $01.30 Psychological Level
Daily Ripple XRP Price Forecast
- Ripple price volatility decreasing in the 4-hour chart.
- The MACD shows increasing bearish market momentum.
Between April 15 and April 19, the Ripple price crashed from $1.83 to $1.30, losing almost $0.50 in overall valuation. Since then, XRP has been trending horizontally around the $1.30-level. Let’s take a closer look with technical analysis.
Ripple Price Sits On Top Of 20-day SMA
Since April 19, the 20-day SMA has stepped up to the task and repeatedly prevented a further downflow. Along with this, the Ripple price has flashed two sell signals – increasing bearish momentum in the MACD and the reversal of parabolic SAR from positive to negative.
Image: XRP/USD daily
Also, the 4-hour Ripple price shows decreasing volatility which is evident by the narrowing of the Bollinger Band. The 20-bar SMA in this timeframe is preventing further uptrend.
Image: XRP/USD 4-hour
XRP Faces Renewed Interest From Institutional Investors
According to a recent CoinShares report, XRP has become the most attractive asset among institutional investors. Over the past week, institutional investment in XRP has significantly increased.
The report noted that approximately $33 million of institutional funding was allocated to XRP investment products last week. With this, the assets under management (AUM) connected to XRP are now at $83 million. An excerpt from the report reads:
We believe this recent renewed appetite for digital assets is due to a combination of increasing acceptance from institutional investors, fears for inflation, and price momentum.
XRP also recovered from its earlier price drop. The initial decline in price is widely attributed to the ongoing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC).
Besides the price decline, money transfer giant MoneyGram also suspended its partnership with Ripple. By March 9, 2021, the price of XRP was $0.47, which is significant because that is higher than its worth before the lawsuit. Now, the price has more than tripled to trade above $1.3.
Notably, there is currently more institutional support for cryptocurrencies as a whole, and thus, more firms are confident in putting their resources behind assets like XRP.
Ripple Price Is Expected To Reach These Levels
The Ripple price will look to enter the $1.40 psychological level after bouncing up from the 20-day SMA.