- Ripple price dropped after two straight bullish days.
- Parabolic SAR reversed from negative to positive.
Between April 15 to April 25, the Ripple price lost $0.80 in its overall valuation having crashed from $1.83 to $1.03. During this drop, XRP reversed the 20-day SMA from support to resistance. Following that, Ripple shot up over the next two days, jumping from $1.03 to $1.40.
Ripple Price Sentiment Reversed From Negative To Positive
While the Ripple price has dropped this Thursday and settled on top of the 20-day SMA, XRP has still flashed the following signals:
- The MACD shows decreasing bearish market momentum.
- The Parabolic SAR has flipped from negative to positive.
Image: XRP/USD daily
In the 4-hour Ripple price chart, XRP has been trending horizontally after climbing up along the upper Bollinger band. The 20-bar SMA has crossed over the 50-bar SMA to form a bullish cross, which is a positive sign. The Band has also started constricting which shows decreasing price volatility.
Image: XRP/USD 4-hour
Ripple’s XRP Negative Sentiment Could Be A Boost For Stellar’s XLM
Victor Argonov, a senior analyst at international FinTech EXANTE, has recently reviewed the state of Ripple’s legal battle with the SEC. He concluded that the downfall of Ripple XRP might cause the ride of Stellar XLM.
Stellar XLM is the 14th most valuable cryptocurrency by market cap. As per Argonov, XLM's rival is XRP, the fourth most valued digital currency. Stellar XLM would need to outperform various large-cap assets to snatch this spot from XRP. However, this feat would be easier for XLM if Ripple were to be swept out of the market because of the ongoing lawsuit.
Ripple XRP and Stellar XLM share some similarities and functions that could easily make XLM an attractive alternative to XRP. More importantly, XLM is not associated with a private company the way XRP is, Argonov added. This gives Stellar an edge over Ripple.
The collapse of the Ripple system, in turn, is likely to increase investor interest in a similar decentralized project Stellar with the XLM token.
He expanded on his point by explaining why he considers Stellar more flexible for investors.
This payment system duplicates the functions of Ripple but is not tied to a private company, and therefore, it is perhaps better protected from prosecution.
Ripple Price Is Expected To Reach These Levels
The Ripple price will need to bounce up from the 20-day SMA and aim for the $1.55 resistance barrier.