- Ripple is planning to roll out XRP Ledger to central banks in support of CBDCs.
XRP seems ready to break out beyond $0.4 following the formation of a falling wedge pattern.
XRP price has been generally been stable over the last few days despite the drop to $0.25 which occurred mainly due to Bitcoin’s fall to $30,000. Meanwhile, recovery has been gradual with the crucial barrier at $0.3 limiting price movements.
At the time of writing, XRP is trading at $0.288 while fighting to hold the immediate support at the 50 Simple Moving Average on the 4-hour chart. Price action above this moving average is likely to culminate in two massive movements: regaining the ground above $0.3 and breaking past the falling wedge pattern.
The bullish outlook forms when an asset's price descends with a series of lower highs and lows while converging at a single point referred to as the apex. A breakout usually occurs before the trendlines converge. The typical breakout is mostly confirmed by increasing volume (highlighting a divergence between volume and price). Breakouts from this pattern are generally fast and drastic.
The 4-hour chart shows that the 200 SMA may delay recovery following the expected recovery by absorbing some of the buying pressure. However, XRP could regain the boost on stepping above last week’s resistance at $0.4.
In other news, Ripple is reportedly planning a rollout to central banks despite the ongoing lawsuit with the United States Securities and Exchange Commission.
The blockchain startup is hiring three central bank technical partner managers for its New York, London, and San Francisco offices. The managers will help in the design and deployment of central bank digital currency (CBDC undertakings.
Ripple believes that the XRPL has been developed to “support the issuance of stablecoins with a unique, fungible token functionality called Issued Currencies.” This move also shows that Ripple is confident in its technology and is unlikely to be derailed by the ongoing lawsuit.
XRP intraday levels
Spot rate: $0.29
Relative change: -001
Percentage change: -0.5%
Trend: Sideways
Volatility: Low