Ripple Analysis & Prediction: XRP/USD falls below $0.40, even as they attract more institutional investors

Following a strongly bearish start to this week, the bulls have managed to claw back on Wednesday. However, the bears re-entered the space and the price is currently trading for $0.398. You can check out our previous XRP analysis right here.

Fundamental Analysis

The following are the hottest news stories surrounding Ripple:

Ripple launches a new office in Zurich.

Banking giants attempting to create “Ripple Killer.”

SBI Holdings attempting to enable in-store payments with XRP token.

American Express confirms its use of Ripple’s xCurrent.

Ripple launches new office in Zurich

Ripple recently announced that they had launched a new office in Zurich, Switzerland, for the sole purpose of selling XRP tokens to institutional investors. Zurich has been specifically chosen because it has several high-quality banks. As of right now, the top priority for crypto projects is to get institutional investors to invest in the crypto space.

Regarding this, XRP Research Center tweeted:

“June 4, 2019 *.@Ripple Switzerland LLC obtains Commercial Registry* • Social purpose: “sale of digital assets #XRP to institutional buyers” • Incorporation date:29/05/19

• Headquarters: Zürich

• Sector: Services for banks and credit institutions”

During the Swiss National Bank Conference held back in May of this year, Ripple CEO Brad Garlinghouse impressed a lot of bankers about the importance of the blockchain technology in the finance space. Currently, the Swiss commercial registry has approved for Ripple to open office to sell XRP to institutional investors and establish branches in Switzerland.

Banking giants attempting to create Ripple killer

As per Nikkei Asian Review, large banking corporation in Japan like MUFG and Sumitomo are looking to partner up with banks in the U.S. and Europe to create “Fnality Internation.” Fnality is a consortium which will create a cross-border settlement framework among the participating banks and will utilize a fiat-pegged cryptocurrency.

The cryptocurrency is called “utility settlement coins” (USCs) which is a fiat-pegged coin and will have a one-to-one ratio to the underlying fiat currencies. So, if you were to send money from the USA to Japan, then the transfer will deposit the transaction amount in yen to Japan’s central bank.

Hyder Jaffrey, the investment strategy chief at UBS – one of the participating firms, told the Wall Street Journal (WSJ):

You remove settlement risk, the counterparty risk, the market risk. All of those risks add up to costs and inefficiencies in the marketplace.

SBI Holdings attempting to enable in-store payments with XRP token

SBI Holdings, aka Strategic Business Innovator Group, is a financial services company group based in Tokyo, Japan. Over the last year, they have been extremely bullish on Ripple and XRP. They announced the MoneyTap app last year which involves several banks in Japan, and is powered by Ripple’s xCurrent. The app enables users to pay merchants or other users with just a phone number or Q.R. code.

The potential of this app is enormous since SBI is already leading a banking consortium of 61 banks, which means that the app’s usage could spread fast.

American Express confirms its use of Ripple’s xCurrent

Colin O’Flaherty, the vice president of American Express, confirmed that the firm is using Ripple’s xCurrent while speaking on the last day of Money 20/20 event in Amsterdam. Back in November 2018, it was announced that American Express would use Ripple’s technology for cross-border payments. O’Flaherty said:

“Ripple offers instantaneous, point-to-point conversations between the sender and receiver of funds. And that provides a real opportunity to alleviate most of the issues our customers are facing.”

Technical Analysis

For our technical analysis, we will be using Trading View’s charts. We will be looking at the following price charts:

Daily.

Weekly.

Monthly.

4-Hour.

2-Hour.

1-Hour.

XRP/USD daily chart

The bulls failed at the $0.40 level this Thursday as the price went down to $0.398.

The upward trending line needs to hold firm to make sure that the price doesn’t fall below any further.

The $0.395 is also an extremely critical support level.

The 100-day simple moving average (SMA 100) curve crossed over with the SMA 200 curve, which is a bullish sign.

The three latest sessions are trending below the SMA 20 curve.

The Elliot oscillator has had 24 straight bullish sessions.

The signal line is diverging from the moving average convergence/divergence (MACD) line indicating increasing bearish momentum.

XRP/USD weekly chart

This week has been extremely bearish so far.

Over the week, the price of XRP/USD has gone down from $0.445 to $0.397, falling by 10.8%.

The price met heavy resistance at $0.445 and then bounced back down.

The bulls need to make sure that that the weekly price doesn’t go below the $0.368 support level.

The Elliot oscillator shows two straight bullish sessions in a row.

XRP/USD monthly chart

Following two straight bullish months, June has been bearish so far.

Over this month, the price of XRP/USD has gone down from $0.44 to $0.395.

If June remains bearish, then the six latest months will be split 50-50 between bears and bulls.

XRP/USD 4-hour chart

The 4-hour price is currently trending in the green cloud of the Ichimoku indicator.

The 4-hour market has formed a triangle pattern from which the price has had a bearish breakout.

Since the beginning of the day, the 4-hour price chart has had two bullish and two bearish sessions.

The latest session has gone from $0.404 to $0.395.

The signal line nearly converged with the MACD line before it diverged away. This shows that the bearish momentum was decreasing before it increased once again.

XRP/USD 2-hour chart

The two latest sessions in the 2-hour price have taken the price back below the downward trending line. Over the two most recent sessions, the price went down from $0.403 to $0.397.

The price is trending below the SMA 200, SMA 100, SMA 50, and SMA 20 curves.

The 20-day Bollinger band has narrowed, showing decreasing market volatility.

The SMA 50, SMA 100, and SMA 200 curves have all crossed over the SMA 20 curve, which is a very bearish sign.

XRP/USD 1-hour chart

The 1-hour XRP/USD is trending below the red Ichimoku cloud.

The three latest sessions are trending in a channel formation. The sessions are also trending in the lower half of the 20-day Bollinger band.

The price is currently trending below the SMA 20 curve.

The signal line has diverged away from the MACD line showing increasing bearish momentum.

Following 14 straight bullish sessions, the Elliot oscillator has now had three consecutive bearish sessions.

Future Behaviour

Ripple’s market is currently going through a bearish sentiment. Even though the Ripple has made some positive announcements, launching an office in Zurich chief among them, it looks like the market is still suffering from the effects of the supposed Bitcoin whale “dump.” The bulls will need to rally together and take the price back up above the $0.40 mark.