XRP, the native token to the most prominent international money transfer protocol, is experiencing a slight uptick in the last 24 hours, trading marginally above $0.48. The bullish wave traversing the market comes on the heels of a mid-week sell-off triggered by remarks from Federal Reserve Chair Jerome Powell, who announced a pause on interest rate hikes on Wednesday. This bullish outlook appears to be shared by other cryptocurrencies, with Bitcoin and Ether also showing gains.
Despite the current positive trend for XRP, the token’s price is not out of the woods yet. Bulls are seemingly struggling to maintain the uptrend and must reclaim resistance at $0.5 to stave off bearish pressures and focus on an eventual breakout to $1.
Ripple continues catering to the needs of central banks interested in adopting payment networks backed by central bank digital currencies (CBDCs). According to a recent announcement by Peersyst Technology, the Central Bank of Colombia is prepared to evaluate the potential efficiency of Ripple’s CBDC Platform. The endeavor involves collaboration between the central bank, Ripple, Peersyst Technology, and MinTIC.
The Central Bank of Colombia’s exploration of the Ripple CBDC Platform will be bolstered by the XRP Ledger – a fundamentally energy-efficient and open-source blockchain. All parties have agreed to deliver the project by the end of 2023.
However, XRP price currently finds itself sandwiched between two moving averages, trading at $0.48 and caught between the 100-day Exponential Moving Average (EMA) support and resistance from the 50-day EMA. Recovery appears to have stalled, possibly held back by a sell signal from the Moving Average Convergence Divergence (MACD) indicator.
Investors may not be convinced that XRP is ready for a significant upswing to $1, especially considering the pending lawsuit with the Securities and Exchange Commission (SEC) still awaiting resolution. Traders eyeing long positions in XRP may want to wait until the price breaks and holds above the 50-day EMA, or even until XRP reclaims the $0.5 resistance.
On the downside, short positions in XRP will not be viable until the price breaks and sustains movement below the 100-day EMA. Additionally, market participants should keep in mind the potential support provided by the confluence formed by the 200-day EMA and the ascending trendline. If bears weaken this key support, XRP price could seek refuge at $0.43 or even face the risk of sliding below $0.4.
Source: Coingape
