Tanya Abrosimova
Independent Analyst
- XRP/USD staged a recovery inside the current range.
- A sustainable move outside $0.1900-$0.2000 is needed to create momentum.
Ripple has been growing its global presence due to a large number of advanced fintech projects and payment solutions. However, according to the job listings on Ripple’s website, the company is ready to expand into the lending services, which may become the biggest real-life use-case for the third-largest cryptocurrency.
While it is not clear, if the company plans to use XRP on a cross-border basis to provide lending capital, this move can speed up the adoption of the asset, provided that Ripple finds the way to legal and regulatory hurdles.
Meanwhile, XRP’s use is only in remittance, creating an asymmetry between the remittance-receiving and sending countries, Arturo Portilla, Tax and Fintech lawyer commented:
As a consequence thereof, products such as ODL may cause a market assymetry between any two corridors, i.e. USD and MXN. While ODL increases XRP buying pressure in the U.S., it increases XRP selling pressure in Mexico.
XRP/USD: technical picture
XRP/USD is changing hands at $0.1980 with marginal gains within the recent consolidation channel limited by $0.1900 on the downside and $0.2000 on the upside. On a daily chart, XRP/USD is well supported by daily SMA50 (currently at $0.1940). If it is broken, the sell-off may be extended to $0.1900, which is the lower boundary of the above-mentioned channel. While this area is likely to stop the short-term bears, a sustainable move below this area will attract new sellers and bring $0.1866 (the lower line of the daily Bollinger Band) into focus.
On the upside, a strong move above $0.2000 will increase the bullish potential. The next resistance is created by daily SMA100 at $0.2130. It is followed by daily SMA200 at $0.2235 that has been limiting the recovery since the end of April.
XRP/USD daily chart
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