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Ripple Technical Analysis: XRP Keeps Going Through Lengthy Consolidation

4 Min Read
Last Updated March 26th 2021

Daily Ripple XRP Price Analysis

  • Ripple price trends horizontally below the 20-day SMA.
  • The 4-hour XRP is stuck between the 20-bar, 50-bar, and 200-bar SMAs.

Ripple price is currently going through quite an interesting phase. XRP is in the middle of a heavy consolidation period as the price keeps trending around $0.275. Both the daily and the 4-hour chart tells us that XRP is stuck between robust technical levels.

 

Ripple Price Stuck Below The 20-day SMA

The Bollinger band in the daily Ripple price chart had constricted considerably. Following that, the band has been trending horizontally, indicating that XRP is going through a consolidation phase with very low volatility. This Thursday, the Ripple price managed to flip the 20-day SMA from support to resistance. Following that, the price has been trending horizontally around the $0.275-level.

xrp/usd daily chart 012521

Image: XRP/USD daily 

Despite this horizontal trend, the MACD shows sustained bullish market momentum, which means buyers could probably have the edge over the sellers. When we see the 4-hour chart, we can make some more interesting observations. 

xrp/usd 4-hour chart 012521

Image: XRP/USD 4-hour

It looks like XRP tried to reach an intraday high of $0.284 before it got corrected by the 50-bar SMA. It also reached an intraday low of $0.27 before it got saved by the 20-bar SMA. As of now, the 200-bar SMA is acting as immediate resistance.

 

Japan Continues to Support Ripple In The Middle Of US Litigation

In the light of the US Securities and Exchange Commission's (SEC) lawsuit against Ripple, Japan is reiterating its support for XRP. Soon after the SEC announced the lawsuit filing, several exchanges and cryptocurrency service providers in the US delisted or halted XRP support. 

Some of the factors driving XRP’s popularity in Japan include SBI’s influence, Ripple’s marketing, and relatively straightforward regulation classifying XRP as a cryptocurrency. Despite the lawsuit, the price of XRP soared in early January, driven in part by retail investors in Asia. 

When exchanges distanced themselves from XRP, SBI came to its support and released a statement in which the company said that XRP is characterized as a crypto asset and not a security under Japan’s financial laws. 

According to a CoinDesk report, Masakazu Masujima, an MHM Global partner, said that XRP was uniquely marketed as a remittance-instrument in Japan and many people bought it believing it would be the next Bitcoin. Ripple introduced the payments settlement network RippleNet to Asia in 2016 with the joint venture SBI Ripple Asia. 

In addition to a strong partnership with SBI, XRP was treated as a digital asset under Japanese financial law. In fact, long before the SEC lawsuit, Ripple’s CEO Brad Garlinghouse contemplated moving the firm out of the US, citing a lack of regulatory clarity on crypto. The company first considered Japan for the move because XRP is classified as a crypto asset there. 

Mike Kayamori, the founder of Liquid Global, said: 

In Japan, all the tokens that are listed or available to be traded in Japanese regulated or licenced exchanges are already whitelisted or allowed for use by an administrator in advance.

Following the SEC filing, FSA said that under the Payment Services Act, the regulator considers XRP to be a cryptocurrency, as per The Block report. Kayamori added he does not believe that FSA would re-classify XRP as a security in light of the US lawsuit, but if it did, it would be “a first.”

 

Ripple Price Is Expected To Reach These Levels

As things stand, the Ripple price is currently trending horizontally and will probably continue to do so, around the $0.275-level.

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