XRP price bulls are doing all they can to ensure the pivotal $0.5 level stays within their control in the wake of a minor rebound from short-term support at $0.56. Like other cryptos in the market, XRP is suffering the lack of liquidity caused by disinterest from investors who have in recent months resorted to a hands-off approach.
Although slightly in the green, XRP price has not changed much for the last 24 hours. Trading volumes barely hit $1 million while the market capitalization holds at $26.8 billion, slightly above USD Coin (USDC) with $25.6 billion.
XRP Price Set To Confirm 10% Breakout?
XRP has over the last few weeks formed an inverse head and shoulders (H&S) bottom pattern which depends highly on volumes to play out. As a general rule, this reversal pattern tends to appear during a downtrend. Following its completion, a complete trend change occurs as the downtrend gives way to an uptrend.
The presence of the inverse H&S pattern alone does not change the outlook of the market. Therefore, traders must tick certain key boxes before trading the pattern. For instance, XRP price must push for the neckline resistance break, which must be accompanied by a spike in volume, otherwise, it could be a bull trap.
The On-Balance Volume (OBV) indicator shows the state of the volume. Hence, for the incoming breakout at $0.51, the OBV must be trending aggressively toward the overbought region to sustain the uptrend.
Before facing the neckline resistance, the confluence resistance at $0.5054 created by the 50-day Exponential Moving Average (EMA) (red) and the 100-day EMA (blue) must come down.
Based on the Moving Average Convergence Divergence (MACD) indicator’s position, bulls have the upper hand. However, traders waiting on the sidelines should be willing to back the breakout in XRP price to build the required momentum and sustain the inverse H&S pattern.
Ideally, buy orders should be placed marginally above the breakout point at $0.51 with a stop loss at $0.5054 – the confluence support/resistance. The breakout target is calculated by measuring the height of the pattern from the neckline to the head and extrapolated above the breakout point. To $0.56.
Ripple CTO Addresses Centralization Concerns
As XRP price struggles to break the stalemate in the market, Ripple’s CTO David Schwartz has addressed concerns regarding the centralization of XRP. Schwartz in response to “Wolf of Golden Street” a user on X (formerly Twitter) who mentioned Max Keiser, a Bitcoin maximalist at the forefront of the accusation to reinforce his point, said that the claims were baseless without evidence to back them up.
“I haven’t been able to find a coherent claim to answer,” Schwartz added. “Any particular tweet that makes an actual claim? They all just seem like random assertions mixed with insults.”
Wolf of Golden Street pushed harder amid allegations that XRP was created only to empower the top 1% holders. Schwartz defended Ripple saying, XRP was created for everybody with its issuance backed by the XRP Ledger (XRPL).
1.Does XRP really empower the top 1% who is controlling the main XRP system.
I’m not sure I understand this claim. The top 1% of what exactly? XRP empowers anyone who want to use the ledger to track the ownership and exchange of assets. What kind of control is he talking about…
— David “JoelKatz” Schwartz (@JoelKatz) September 24, 2023
In a slight acceptance of the centralized claim, the CTO said that while the architecture of XRP may seem centralized the token itself is decentralized.
This is not the first time Ripple has had to defend the decentralization of XRP and is likely not to be the last. Meanwhile, the “Proper Party” celebrating the win against the SEC is expected later this week on September 29.
Ripple might make key announcements during this event including the potential for an IPO and a settlement between the SEC to avoid going to trial.
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