Ripple Technical Analysis: XRP Looks To Enter The $0.70 Psychological Level
Daily Ripple XRP Price Analysis
- Ripple price has re-entered the Bollinger Band.
- The MACD is on the verge of reversing from bearish to bullish.
On June 4, the Ripple price encountered resistance at the 20-day SMA and crashed from $1.05 to $0.54 on June 22. During this crash, XRP managed to flip the 200-day SMA from support to resistance and fell below the Bollinger Band in the daily chart.
Ripple Price Jumps Back Inside The Bollinger Band
Over the last two days, the Ripple price has bounced up from the $0.54 support wall and is presently hovering around $0.685, and has re-entered the Bollinger Band. The MACD is on the verge of reversing from bearish to bullish. Plus, the Band has started to contract to show decreasing price volatility.
Image: XRP/USD daily
In the 4-hour time frame, the Ripple price has flashed two major buy signals:
- XRP has flipped the 20-bar SMA from resistance to support.
- The parabolic SAR has reversed from negative to positive.
The recent jump has pushed the relative strength index (RSI) from the oversold area into the neutral zone.
Image: XRP/USD 4-hour
Ripple director tries to bust XRP myths
In a recent interview with the Crypto Jebb YouTube channel, Director of Developer Relations at Ripple, Matt Hamilton, outlined many talking points to dispel Ripple myths.
Hamilton said the terms centralization and decentralization mean different things to different people. This is why the community cannot agree on XRP’s status as a centralized or decentralized network. However, for him, decentralized means the ability for anyone to use the platform without restriction. For example, Hamilton said no party could stop XRP users from transacting on the network if they wish.
The key criteria one is you don’t want somebody to block you, or censor you, or restrict you from using the network, right? I want to be able to make a payment without, you know, regardless. In that regard the XRP Ledger is decentralized.
He added that no one could seize XRP tokens, and transactions cannot be censored, which, according to him, is a crucial measure of decentralization. Another debated topic is the centralization of nodes on the XRP Ledger. A node connects to the network to validate and relay transactions while also retaining a copy of the ledger.
Full nodes ensure a particular set of rules are being followed. The danger here relates to a dominant entity, with majority node control, manipulating the network. The XRP ledger currently has over 155 validator nodes, of which 19 are reportedly identifiable as Ripple nodes, meaning Ripple controls 12% of the nodes.
Hamilton confirms this by saying that Ripple nodes make up only a small percentage of the network. He also added that 80% consensus is needed to validate transactions. Therefore Ripple cannot manipulate the platform.
The network itself is decentralized. Ripple only controls a few percent of the nodes on the network. And the consensus algorithm means you need 80% consensus on the transactions. So there’s no unilateral party that controls it.
Ripple Price Is Expected To Reach These Levels
The Ripple price has to break above the 50-bar SMA in the 4-hour chart and the 200-day SMA ($0.73) to continue its upward trend.