Ripple Technical Analysis: XRP consolidates as upswing to $1 beckons
- Ripple settles for sideways price action between $0.6 and $0.65.
- XRP/USD has the potential to resume the uptrend if the position above the Bollinger bands' middle boundary is reclaimed.
- Ripple CEO Brad Garlinghouse calls for a clear regulatory framework to ensure sustainable growth in the cryptocurrency industry.
Ripple has remained stable in the last couple of days, mainly due to the resistance encountered at $0.7 and $0.75. The cross-border token appears to have embraced consolidation ahead of an anticipated breakout to $1.
Ripple is motionless between $0.6 and $0.65
XRP/USD is trading at $0.62 in the wake of a recent rejection from levels very close to $0.7. The Bollinger bands' middle boundary has limited its immediate upside. To confirm a breakout to the upside, Ripple must close the day above the middle layer.
The constriction of the Bollinger Bands suggests that XRP has settled for consolidation. However, the squeeze points towards a probable breakout. Therefore, Ripple bulls should defend the support at $0.6 as if their lives depended on it. The 50 SMA has reinforced the anchor on the 4-hour chart and the Bollinger bands' lower boundary.
The ongoing consolidation has also been validated by the leveling Relative Strength Index currently at the midline. For now, sideways trading action may take precedence until a breakout comes into the picture.
XRP/USD 4-hour chart
It is worth mentioning that trading under the confluence support at $0.6 might call for more sell orders. If the selling activities create enough volume, there is a chance of Ripple falling to the next critical level, as shown by the 100 SMA. Extended bearish price action could seek refuge at the 200 SMA as well as last week's support at $0.45.
Ripple's Brad Garlinghouse calls for regulatory clarity
The CEO of Ripple, Brad Garlinghouse, in an interview with CNN's Julia Chatterley, reckoned that one of the biggest drivers of the gains seen in crypto over the last several months is the excessive printing of fiat money by governments across the globe. For instance, inflating the dollar drives investors to non-inflationary assets such as XRP and other digital assets.
Garlinghouse maintained that the United States is lagging in providing clear regulatory frameworks compared to other global economic leaders. Clarity will make sure the investors have confidence in digital technologies. The CEO said that most of Ripple's customers are not US-based due to the uncertainty in the regulatory framework.