Ripple Technical Analysis: XRP Drops Below Critical Levels In 4-hour Time Frame
Daily Ripple XRP Price Analysis
- Ripple price has continuously struggled to break above $0.57 resistance.
- The parabolic SAR in the 4-hour chart has reversed from positive to negative.
Over the last five days, the Ripple price has been trending horizontally below the $0.57 resistance barrier. One the downside, XRP has found formidable support at the $0.51. Let’s take a closer look with technical analysis.
Ripple Price Struggles To Break Above $0.57 Resistance
Looking at the daily Ripple price chart, we can see that XRP has been trending horizontally over the last five days, with the bulls and bears effectively cancelling each other out. In the daily timeframe, the market momentum is still bullish.
Image: XRP/USD daily
However, when you see the 4-hour Ripple price chart, there are two negative signals:
- The 20-day and 50-day SMAs have been reversed from support to resistance.
- The parabolic SAR has flipped from positive to negative.
Image: XRP/USD 4-hour
Ripple Labs Getting A 40% Stake in Tranglo
Ripple Labs is soon acquiring a 40% stake in Tranglo, a cross-border payments platform in Asia. Ripple noted that the acquisition would help the firm meet the demand for XRP usage in transactions. Notably, just a few days back, Brooks Entwistle became Ripple’s managing director in Southeast Asia.
Tranglo has processed over 20 million transactions to date, totaling $4 billion. In a recent interview, Entwistle said that Ripple is expanding into Southeast Asia in particular to meet the “demand for cheaper, faster and more reliable cross-border payments with the use of crypto.”
This acquisition is part of Ripple’s strategy to become a global forex facilitator. According to an earlier report, Ripple said that the XRP token would be an ideal neutral bridge currency for central bank digital currencies (CBDCs). In a whitepaper entitled “The Future of CBDCs,” Ripple outlined the need for CBDCs and how to overcome the associated challenges.
CBDCs should be exchangeable across the global market. Ripple said that this interoperability would require open payment protocols and neutral bridge assets. Since companies have already used XRP for foreign exchange, Ripple mentioned that XRP would be an ideal neutral bridge asset. This is if Ripple succeeds in the legal battle with the US Securities and Exchange Commission (SEC).
Ripple Price Is Expected To Reach These Levels
The Ripple price is going to keep hovering along the $0.57 resistance line.