Ripple Technical Analysis: XRP suffers as number of addresses drop sharply post airdrop
Daily Ripple XRP Price Analysis
- Ripple has dropped below the descending wedge pattern in the 4-hour chart.
- The daily price chart is about to flash a buy signal with a red-nine candlestick.
Ripple’s price action following the much-hyped SPARK airdrop has been on the decline. Over the last five days, XRP has dropped from $0.572 to $0.45. Multiple technicals are hinting at a further price drop. However, there is some hope on the horizon. What do we mean by that? Let’s take a look.
XRP drops below key level
Ripple was trending in a falling wedge formation. However, the price managed to break below the 200-bar SMA and wedge pattern over the last seven sessions. Two more indicators show that the worst is yet to come.
Image: XRP/USD 4-hour chart
Firstly, the MACD indicates increasing bearish momentum. Secondly, the 200-bar SMA has crossed above the 20-bar SMA to chart the bearish cross pattern.
Bulls coming back soon?
It seems like the cross-border remittance token is about to flash a buy signal on the TD sequential indicator with a red-nine candlestick.
Image: XRP/USD daily chart
The price may drop down further to the channel's lower bound, or the 50-day SMA ($0.42) before rebounding back up, possibly to the $0.497 resistance.
Ripple exodus following SPARK airdrop
As per Santiment, an on-chain data analytics platform, the number of XRP addresses rose sharply, leading up to the Spark airdrop.
Just as the snapshot occurred at 12 am UTC on December 12th, the unique amount of addresses interacting on the XRP network plummeted and is back to month-low levels for now. This is a very negative sign, as it shows that the network is weakening.
Standard Chartered to expose XRP to institutional clients
Popular British multinational bank Standard Chartered plans to launch an institutional-grade digital assets custody platform dubbed Zodia Custody. The bank is all set to work with Northern Trust to roll out the new platform, which will aid institutional investments into Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH).
Zodia aims to meet the surging institutional demand for exposure to cryptocurrencies. The platform hopes to take advantage of traditional banking structures and fintech to assist customers looking to delve into the cryptocurrency sector.
Commenting on the bank’s partnership with Northern Trust, Alex Manson from Standard Chartered said:
The launch of Zodia demonstrates our commitment to rewiring the DNA in banking.
Drawing on Standard Chartered’s heritage of providing custody services to institutional clients for 160 years, Zodia’s mission is to be a ‘force for good’ by lifting industry standards for digital assets in a sustainable, safe and responsible way.
If Zodia successfully registers with the UK Financial Conduct Authority (FCA), the firm is set to begin work in 2021.
Key price levels to watch for XRP
The 50-day SMA ($0.42) is the most critical level right now. If the buy signal is validated, the price should bounce up from this level. However, if the buyers fail to take advantage and XRP crashes below the 50-day SMA, it will be upto the 200-day SMA ($0.282) to inhibit further downflow.