XRP Bearish Formation Remains Strong As Price Struggles Further

The XRP Bearish formation remains strong as the price struggles to establish momentum after the 200MA daily rejection level. In today’s Ripple price news, we take a closer look at the latest price analysis.

Despite surging by 5% on Saturday, the XRP bearish formation stayed after another weekly candle closing below the $0.2275 level of resistance. The altcoin failed to trade above $0.2275 since the major capitulation at price during the coronavirus-induced sell of back in March. Another important factor around XRP from an analytical perspective is the descent of trade volume across major crypto exchanges with $1.6 billion reported in one day, compared to the daily volume of more than $5 billion.

The lack of volume showed a lack of interest from retail investors which was reiterated by the lack of Google searches for the altcoin this year compared to previous years. The ripple foundation that issued the XRP token attracted the intense security during the ongoing downtrend which lasted about two years. One of the most common points of criticism is that the foundation has a tactic of selling XRP tokens over the counter even though the CEO Brad Garlingouse revealed that the sales were vital so the company can survive.

XRP/USD chart
XRP/USD Chart (Source: Tradingview)

Going back to the charts, XRP price struggles and is quite bearish from a macro-perspective that could lien itself up from a bounce on lower time frames as it is still trading above $0.20 level of support which was a point of resistance back in April. Being able to establish a key support level above $0.20, XRP can take out the daily 200 moving average of $0.2155 after not being broken since February. Ripple is a real-time gross settlement system which was developed by the Ripple company. It is also referred to as the Ripple Transaction Protocol which can trace its roots to 2004 once a web developer called Ryan Fugger that had the idea to create a monetary system that was decentralized and can allow users to create their own money.

As you probably know from our Ripple news, the cryptocurrency project has long pushed for regulators in the US to create clear and common sense crypto regulations. The San Francisco startup wants to be among the first projects which will influence such decisions. We can see that the Ripple CEO defends the regulation of XRP and in a series of tweets, says that policymakers in the US will need to step it up in order to compete.

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