XRP/USD Daily Chart (Coinbase) – Source: TradingView
Trading volumes exceeded the 14-day moving average yesterday and appear to be on track to do the same today.
This confirms that this is a highly contested area for market participants. If the price breaks below this level, it means that the selling pressure outpaced the market’s buying interest, and that would favor a bearish outlook.
In that case, we could witness a drop to $2.2, meaning a 20% downside risk in the near term.
Meanwhile, if XRP rises strongly upon hitting this mark, we could envision a move to $3.1 first and then much higher as market conditions still favor a bullish outlook despite the latest retreat.
Ripple’s Ambitious Plans Favor a Positive Long-Term Outlook for XRP
Ripple aims to become the world’s go-to decentralized solution for cross-border payments. Its ambitious vision involves overthrowing Swift’s long-standing dominance of this market.
The launch of Ripple USD (RLUSD), the network’s first native stablecoin, is considered a positive step in this direction as users can now rely on a dollar-pegged instrument to make payments.
It has been the project’s goal to create a bank in the United States and other corners of the world as well to facilitate the transfer of fiat money on and off the XRP Ledger with almost instant finality.
If Ripple controls both ends of the transaction, on-chain settlements through RLUSD and off-chain deposits through its bank, that would allow it to offer an end-to-end solution for corporations to send payments overseas instantly and at a fraction of the cost that SWIFT charges.
