Ripple [XRP] Price Analysis: Under downward pressure, support at 12 cents, December 2019 lows is a level to consider
It is a total block. The world has been paralyzed by the devastating effects of the coronavirus. From Spain, Italy, Iran, Kenya, South Africa and Asia, governments have announced blockades and a global recession is looming.
But governments not only announce blockades and other restrictive measures, there are also cash distributions. Free cash / stimulus as the coronavirus induces a reduction in interest rates.
The United States cut theirs, and so did the Bank of England. As the economy picks up and the stock markets fall, many more are expected to go ahead and inject billions more to shore up their core industries.
Governments CBDC Floating Ideas
There is even talk of central bank digital currencies, and in China, for example, the far-reaching consequences of covid-19 unleashed by the WHO upon discovering that it spreads with cash would accelerate the launch of the Digital Yuan. The Fed is also said to be considering this.
XRP like a bridge
As it is XRP it will be the perfect bridge. You can connect different CBDCs to Bitcoin and fiat. But XRP has more advantages.
Your ledger cannot be centralized as it lacks voting rights and stakeout features.
The XRPL cannot be controlled by a single entity or a cartel, as Justin Sun and Binance attempted to take over the Steemit blockchain.
XRP / USD price analysis
The bears are firmly in control. The price of XRP is down 30% to date And from the daily chart, the settlement pressure is high.
Although there are signs of support after March 12 fell below the 17-cent lows of December 2019, any rejection of the highest highs this week, and specifically the bulls' failure to recover above 17 pennies could trigger another wave of lower lows.
With candle bands along the lowest BB, technically every high should be a selling opportunity for derivatives traders. Any breakdown below the March 12 lows of 12 cents could lead to further losses at 10 cents or 2017 lows.
On the other hand, for bulls to be in control, a definitive break above 17 cents must be printed on the back of high trading volumes. So the first target will be 25 cents.
Graphic courtesy of Trading View – Bitfinex
Disclaimer: The opinions expressed are those of the author and are not investments. Advice. Trading in any form involves risk. Do your research.
