Ripple Technical Analysis: XRP Looks To Cross Over The 20-day SMA
Daily Ripple XRP Price Analysis
- The Ripple price shot up by 20% this Sunday.
- The Bollinger band shows increasing price volatility.
- The MACD shows increasing bearish market momentum.
- The Parabolic SAR tells us that the current market sentiment is negative.
Between April 15 to April 25, the Ripple price has crashed from $1.83 to $1.03, losing almost $0.80 in overall valuation. During this downward surge, XRP managed to reverse the 20-day SMA from support to resistance. Let’s take a closer look with technical analysis.
Ripple Price Jumps By 20%
Ripple price shot up from $1.03 to $1.23, gaining almost 20% in its overall valuation. However, the overall market sentiment seems negative due to the following signs:
Image: XRP/USD daily
In the 4-hour Ripple price chart, XRP has had four consecutive bullish sessions, which has helped it reverse the 20-bar and 50-bar SMAs from resistance to support. However, the Bollinger band is expanding, which shows increasing XRP price volatility.
Image: XRP/USD 4-hour
Some “Good News” From Ripple Lawsuit
Ripple’s Brad Garlinghouse recently revealed some “good news,” adding that the firm has onboarded 20+ customers since the SEC filed the ongoing lawsuit. Notably, the exec was quick to point out that all of these customers are based abroad, just like 90% of Ripple’s user base. Demographically, Garlinghouse went on to imply, most of Ripple’s existing customers were unaffected by regulatory concerns in the US.
Garlinghouse also went on to highlight that despite the said lawsuit, 2020 was RippleNet’s biggest year ever, with the same processing over 3 million transactions. In fact, the same was expanded upon by Ripple’s Q4 report which was released in February. However, the report also found that over 12% of XRP volumes were affected thanks to the aforementioned lawsuit.
The exec also expanded on other spaces the firm has been dabbling in recently. CBDCs, for one, is one nascent sector Ripple has sought to be part of, with the blockchain firm recently piloting a private XRP ledger for central banks launching CBDCs back in March. According to Garlinghouse, over 80 central banks are looking into the potential impact of CBDCs.
Finally, and perhaps most “controversially,” Garlinghouse also touched upon his distaste for Proof of Work. The exec asserted that while he is very bullish on Bitcoin, the community needs to be “intellectually honest” and look to a better mechanism for transaction validation.
Ripple Price Is Expected To Reach These Levels
The Ripple price will likely jump to the 20-day SMA, which is currently hovering around $1.35.