Current trend

Quotes of the XRP/USD pair are held around 0.5037, forming a downward channel. In the middle of last month, the instrument reached its lower limit around 0.4300, after which it corrected to the center line of Bollinger Bands, but the price also failed to break above it.

Some support for the token's position comes from reports of Ripple's collaboration with Tokyo-based digital asset financial services arm HashKey Group, which has already increased investor interest in the instrument as the company has the opportunity to promote its own blockchain supply chain solutions XRP Ledger (XRPL) on Japanese market. In particular, they will be adapted and deployed as part of a partnership involving SBI Ripple Asia, a joint project between SBI Holdings and Ripple. XRPL is expected to become a foundational technology platform, as this blockchain specializes in tokenization and exchange of both crypto and real assets, while allowing participants to significantly increase the speed of settlements against the backdrop of low costs and scalability, which will certainly give Japanese businesses new impetus for development. Experts believe that the partnership will not only expand its presence in the region, but will also increase the level of acceptance of digital currencies. It should be noted that HashKey innovations for blockchain-based supply chain financing have been registered by more than 4.0 thousand companies, including 23 banks and 4.3 thousand suppliers, and the total volume of transactions using them exceeded 7.0 billion dollars.

Support and resistance

The XRP/USD pair is testing the support zone 0.5020–0.4883 (Fibonacci retracement 23.6%, Murrey level [2/8]), consolidation below which will lead to a further decline in prices to targets 0.4300 (area of annual lows) and 0.3906 (Murrey level [0/8]). The key level for the "bulls" seems to be 0.5859 (Fibonacci retracement 50.0%, Murrey level [4/8]), if it breaks out, there will be a possibility of changing the current downward trend, and growth will continue to the targets 0.6836 (Murrey level [6/8]), 0.7324 (Murrey level [7/8]) and 0.7812 (Murrey level [8/8]), but so far, such a movement scenario seems less likely.

Technical indicators generally point to the possibility of further declines. Bollinger Bands are directed downwards, MACD is stable in the negative zone, and Stochastic is reversing upwards near the overbought zone, which does not exclude corrective growth, but its potential seems limited. 

Support and resistance

Resistance levels: 0.5859, 0.6836, 0.7324, 0.7812.

Support levels: 0.4883, 0.4300, 0.3906.

Trading tips

Short positions can be opened below 0.4883 with targets at 0.4300, 0.3906 and stop-loss at 0.5370. Implementation period: 5-7 days.

Long positions may be opened above 0.5859 with targets at 0.6836, 0.7324, 0.7812 and stop-loss at 0.5400.