- Ripple (XRP) retesting 40 cents, stable in the last day
- Change of leadership at ECB could be supportive for Ripple and blockchain in general
Christine Lagarde will take over from Mario Draghi as the head of ECB. As a blockchain and crypto believer, her entry is significant. On more than one occasion she has been quoted fronting several DLT technologies including Ripple’s.
Ripple Price Analysis
Fundamentals
Good news is, Christine Lagarde, the Managing Director of the IMF, will take over from Mario Draghi. While Mario did a lot for the ailing European economy, the entry of Christine is a fresh breath of air. Particularly significant for the crypto community, blockchain as an emerging and disrupting technology will be more visible during her tenure. It’s easy to see why.
Aside from being one of the top brass openly acknowledging crypto and blockchain, she’s particularly keen about Ripple and related products. Although she advocates for proper regulations, labeling fitting laws as a “pillar of trust,” her support and enthusiasm for Ripple is bullish for XRP. In more than one occasion, she has been quoted asking banks to innovate or die singling out the power of Ripple and Circle.
Furthermore, the fact that Ripple’s management team are globe-trotting with friends in high places as in the White House helps in their agenda. Earlier, the former Chief Marketing Strategist, Cory Johnson, said Ripple is in constant communication with officials from the Trump’s administration.
Even so, Ripple’s objective is not to compete with SWIFT. The latter is a market leader with more than 11,000 global banks using its network. As per Marjan Delatinne, a former SWIFT employee and Ripple’s Head of Global Banking, the global payment platform is preferably complementary to existing rival systems.
Candlestick Arrangement
At the time of writing, XRP is reacting from 40 cents. From candlestick arrangement, the level is a significant support level now that XRP is within a bullish breakout pattern against the USD.
If anything, buyers are in control. However, the short to medium term trajectory is mainly dependent on buyers. Should they build sufficient momentum and rally past 50 cents at the back of high trading volumes, XRP prices will likely surge to 80 cents.
On the other hand, losses below 34 cents spell doom for XRP holders. Not only will it shake out day traders but such a shock will likely trigger panic sells below Q1 2019 primary support at 30 cents. Unexpected but not discounted, such deep losses will cancel this projection.
Technical Indicators
Anchoring this trade plan is June 22 candlestick. With high trading volumes of 113 million, any reversal of June 27 losses-signaling entry of bulls, should be at the back of high participation surpassing 113 million and 20 million averages. Similarly, sell-off below 40 cents canceling buyers of mid-May ought to be with high trading volumes confirming bears of late June 2019.
Chart courtesy of Trading View. Image Courtesy of Shutterstock