Ripple Technical Analysis: XRP pushed down by the 20-day SMA
Daily Ripple XRP Price Analysis
- 20-day SMA is stopping Ripple from reaching $0.60.
- XRP has charted the death cross pattern in the 4-hour price chart.
Ripple has found heavy resistance at the 20-day SMA, which has prevented the price from reaching new levels. If the price manages to break past this barrier, it should reach the $0.60 psychological level.
Ripple trends horizontally
Looking at the daily chart, one can see that the price jumped up from $0.47 to $0.57 on December 16. Ever since then, the 20-day SMA has prevented the price growth for the last 5 days.
Image: XRP/USD daily chart
The 4-hour price chart also adds further credence to our overall bearish outlook. The 200-bar SMA has crossed over with the 50-bar SMA to form the highly bearish death cross pattern. The MACD also shows increasing bearish market momentum.
Image: XRP/USD 4-hour chart
Overall, these indicators combine to show us that the overall short-term market view is bearish. Despite this, Ripple’s overall public sentiment seems to be pretty bullish.
XRP Holders to get 45,827,728,412 Spark Tokens
Flare, a Ripple-backed cryptocurrency startup, is tracking the number of Spark tokens it will airdrop to XRP investors in 2021. The token is part of a new smart contract ecosystem that’s designed to bring Ethereum-type functionality to the XRP Ledger.
After thorough calculations, Flare says it will airdrop a total of 45,827,728,412 tokens to XRP holders. This number excludes the Spark tokens from cryptocurrency exchanges that are not supporting the airdrop. The startup highlighted that it will not issue Spark tokens to Ripple, which holds over 54,172,271,000 XRP tokens now.
However, Flare will give Spark tokens to XRP accounts dedicated to Rippleworks, a charitable organization founded by Chris Larsen, Ripple's co-founder. The funds will be distributed at a rate of 1 XRP to 1.0073 Spark.
The upcoming airdrop is supported by several cryptocurrency exchanges and is set to happen early next year once the Flare network is up and running. The airdrop will trigger a tax obligation for US citizens, as per the Head of Tax Strategy at CoinTracker.
Pantera Capital CEO is bullish on XRP
In a recent interview with Raoul Pal, Dan Morehead, the Pantera Capital Management LP CEO, spoke about XRP. Pal, a former hedge fund manager, is currently the CEO of the finance and business video channel Real Vision.
Commenting on XRP, Morehead said that XRP is garnering the long-anticipated cross-border money movement.
XRP is accumulating the cross-border money movement that everyone in the industry has been talking about for a long time. Currently, blockchain-enabled cross-border money movement from the United States to Mexico is getting close to 10% of all of that very important $25 billion remittance corridor. So it’s huge success for our industry for a use case that’s really making people’s lives better.
Key price levels to watch of XRP
If the price drops down, $0.54 should act as a good stopping point since it has the confluence of the 200-bar and 50-bar SMAs. A further break below these levels will take the price down to 50-day SMA ($0.46) and the 200-day SMA ($0.292).