Ripple Technical Analysis: XRP Continues To Struggle At $1 Psychological Level
Daily Ripple XRP Price Analysis
- Ripple price volatility is decreasing in the 1-day timeframe.
- XRP has reversed market sentiment from positive to negative.
Over the last 48 hours, the Ripple price has been stuck under the $1 psychological level. Before that XRP had crashed from $1.58 to $0.785 – losing 50% of its overall valuation between May 19 and May 23. During this crash, XRP managed to flip the 20-day and 50-day SMAs from support to resistance. Let’s take a closer look with technical analysis.
Buyers Continue To Fail To Push Ripple Price Above $1
This Monday, the buyers took control of the Ripple price and pushed it up from $0.784 to $0.98. As you can see, the bulls have repeatedly tried to break above the $1 psychological level, but have failed to do so. The Bollinger band has started to contract to show decreasing price volatility.
Image: XRP/USD daily
In the 4-hour Ripple price chart, XRP has managed to flip the parabolic SAR from positive to negative and has encountered resistance at the 50-bar SMA. As such, XRP is struggling in this time-frame. However, the MACD shows that market momentum here is still bullish.
Image: XRP/USD 4-hour
Ripple Adds NFT Support
Ripple recently announced its next step in reducing gas fees and minting costs for non-fungible tokens (NFTs) on the XRP Ledger (XRPL). The payments company highlighted its plan to combat high gas fees for trading and mint fees for NFTs.
Despite the rapid rise of NFT culture, interest has decreased a bit recently, as users are discovering how complicated the transfer process for taking ownership is. Ripple’s announced plan aims to minimize these fees by integrating NFT marketplaces on its XRP Ledger. The assimilation to XRP will give both buyers and sellers a more cost-effective and overall pleasant experience while working in the NFT space.
Another benefit of the proposed integration is the green energy savings the XRP ledger will provide over proof-of-work blockchains that mint NFTs. Ripple said:
Because the XRPL uses a novel consensus process for validating transactions, it consumes negligible amounts of energy and is 120,000x more efficient than proof-of-work networks. Building on the XRP Ledger provides developers a unique opportunity to run more sustainable NFT apps and marketplaces while eliminating a heavy burden for the planet.
Ripple is not the only name in the game of trying to save NFT transactions from massive gas fees. Both Immutable X and Enjin have been working to save traders’ money, with the former already announcing $1.3 million in reduced gas fees for NFT traders.
Ripple Price Is Expected To Reach These Levels
If the Ripple price fails to break above the $1 level, it could potentially crash to the 200-day SMA ($0.67).