Ripple Price Analysis: XRP Tied Underneath The 20-day SMA
Daily Ripple XRP Price Forecast
- Ripple price went up after flashing red-nine candlestick.
- XRP reversed parabolic SAR from positive to negative in the 4-hour chart.
The Ripple price crashed from $1.04 to $0.827 between June 4 to June 12, after encountering resistance at the 20-day SMA. Looking at the daily chart, we can see that XRP has been rejected multiple times by the 20-day SMA. Let’s take a closer look.
Ripple Price Goes Up After Flashing Buy Signal
On June 12, the Ripple price flashed a buy signal in the form of a red-nine candlestick and then bounced up to $0.88 over the next four days. As things stand, XRP is stuck between the 20-day SMA and the $0.86 support wall. The relative strength index shows us that the buyers and sellers have pretty much canceled each other out.
Image: XRP/USD daily
In the 4-hour time frame, the Ripple price has flashed three different positive signals:
- XRP has managed to flip both the 20-day and 50-day SMAs from resistance to support.
- The 20-bar SMA has crossed above the 50-bar SMA to form a bullish cross.
- The MACD shows increasing bullish market momentum.
However, do not that XRP has flipped the parabolic SAR from positive to negative.
Image: XRP/USD 4-hour
Impact Of New ODL Corridors on Ripple Price
Ripple Labs successfully identified a “big opportunity” in small business (SMEs) payments and targeted this section of the markets as it is a growing source for cross-border payments.
McKinsey has recently predicted that the expected revenue from this market would increase by 9% and is expected to hit the $3 trillion mark by 2022. As already known, most of Ripple’s revenue comes from the Asian Pacific and Eastern Europe regions. The blockchain firm is focused on catering to the low-value cross-border flows of SMEs, which would mainly comprise bill payments, wages, salaries, and e-commerce.
The needs of SMEs are greatly unmet by the traditional systems and are becoming increasingly demanding in real-time.
Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets.
Ripple has also been actively forming new ODL corridors for new customers in the UK and Brazil. Companies like InstaReM (in the UK) and BeeTech (in Brazil) have successfully created a bridge across the Atlantic Ocean using RippleNet. That allows them to establish new corridors for B2B payments and consumer remittances from other countries, including Spain, Italy, Germany, France, and Portugal.
Additionally, both these firms have been able to create new business opportunities for their customers and have been able to scale their connections around the world.
Ripple’s technology includes data rich messaging between all transacting parties and uses a standardized ruleset to send real-time, on-demand, lowcost and trackable payments around the world. RippleNet also connects siloed payments systems through an open, neutral protocol—Interledger Protocol (ILP).
As new institutions partner with Ripple, XRP is likely to get impacted positively.
Ripple Price Is Expected To Reach These Levels
As things stand, the 20-day SMA has repeatedly prevented the Ripple price from rising up. If the buyers somehow manage to flip this level, it should reach the $1 psychological level.