- Ripple affirms support at $1.2 and resumes the uptrend.
- India fears that Ripple will put pressure on its traditional banking system.
- The XRP Ledger is known for its faster, cheaper and reliable transactions.
Ripple trades at $1.27 after a 10.8% losses, incurred in 24 hours. The price corrected to retest support at $1.2 after suffering another rejection from price levels slightly above $1.5. Buyers seem to be gaining traction based on the 2.5% hourly gains. If market stability is sustained, Ripple may significantly resume the uptrend toward $2.
Ripple Emerges as a Competition to the Indian Banking System
According to a report by Ernst & Young for the Competition Commission of India (CCI), Ripple is a formidable competitor to the Indian banking sector. The report points out the decentralized technologies, especially in money transfer and payments, are a threat to non-blockchain solutions systems currently in use.
Payment and value transfer platforms such as Ripple are cheaper, faster, and are less likely to require prefunding. The report adds that:
“An example could be the market for providing cross-border payments where traditional banks may have to compete with solutions such as Ripple, which is a blockchain concept-based tool that enables users to make cross-border payments in various currencies.”
“Ripple may put competitive pressure on the traditional banking system given that it is faster, cheaper and transparent.”
Ripple Holds Critical Support
Ripple holds at the 100 Simple Moving Average (SMA) as well as the descending parallel channel middle boundary. Here, buyers are likely to build on the support for gains above the upper edge. Trading above the 50 SMA on the four-hour chart may trigger buy orders and increase the strength of the tailwind as XRP rolls back to $2.
The Relative Strength Index (RSI) on the same four-hour chart emphasizes that the uptrend may remain intact in the near term. Moving toward the overbought region would also encourage the buyers at the sidelines to return to the market, strengthening the bullish grip.
Looking at the Other Side of the Picture
The Moving Average Convergence Divergence (MACD) paints a bearish picture on the four-hour chart. This indicator follows the asset’s trend and measures its momentum. As the MACD line crosses under the signal line, the bearish outlook becomes apparent. The position of the indicator at the time of writing is bearish.
XRP/USD Four-Hour Chart
The SuperTrend indicator has recently presented a call to sell Ripple, which means that the path with the least resistance is downward. This bearish signal appeared after the indicator flipped above the price, changing the color from green to red.