XRP, the native token to the most prominent international money transfer protocol, is up 1% in the last 24 hours and trading marginally above $0.48. A bullish wave has been traversing the market following the mid-week sell-off triggered by remarks made by the Federal Reserve Chair, Jerome Powell when he announced a pause on interest rate hikes on Wednesday.
The sixth-largest crypto, boasting $25 billion in market capitalization, has in the last 24 hours seen a trading volume of over $1.1 billion rush in. This bullish outlook is not unique to XRP, as Bitcoin (BTC) is up 2.7% to trade at $25,591, while the largest smart contracts token, Ether has gained 2%—and exchanging hands at $1,673 on Friday.
As we will see later, XRP price is not out of the woods yet. Despite the bullish outlook, bulls are seemingly struggling to uphold the uptrend. And yet, they must reclaim resistance at $0.5 to wade off the bearish shackles and focus on the ultimate breakout to $1.
The Central Bank of Colombia Exploring Ripple’s CBDC Platform
Ripple continues to cater to the needs of central banks open to delving into payment networks backed by central bank digital currencies (CBDCs). According to the latest announcement by Peersyst Technology, the Colombia central bank is ready to “evaluate potential efficiencies of a (payments) solution using the Ripple CBDC Platform”
The endeavor will feature input from the central bank, Ripple, Peersyst Technology (a software builder), and MinTIC.
We are excited to announce that @Peersyst and @Ripple will start working with the 🏦 Central Bank of Colombia @BancoRepublica 🇨🇴 through our partnership with @Ministerio_TIC ✅
👉The objective: Evaluate potential efficiencies of a solution using the Ripple #CBDC Platform based… pic.twitter.com/OmGyLbBdGO
— Peersyst Technology (@Peersyst) June 15, 2023
To probe a bit further, the Central Bank is set to collaborate with The Ministry of Information and Communications Technologies (MinTIC) to pioneer use cases that will enhance the sophisticated payment infrastructure through the adept employment of the Ripple CBDC Platform.
This initiative will be significantly bolstered by the XRP Ledger – a fundamentally energy-efficient and open-source blockchain. All the parties have agreed to deliver the project by the end of 2023, which will then be handed over to the Directorate of Digital Government to oversee its operations.
XRP Price Sandwiched Between Two Moving Averages
XRP price is trading at $0.48 but more noticeably, is its position between the 100-day Exponential Moving Average (EMA) (in blue) support and resistance by the 50-day EMA (in red).
Recovery appears to have stalled, plausibly held back by a sell signal from the Moving Average Convergence Divergence (MACD) indicator. Investors are not yet convinced that XRP is ready for the grand upswing to $1, especially with the lawsuit Ripple is battling with the Securities and Exchange Commission (SEC) still waiting for an imminent determination.
Traders eyeing long positions in XRP may want to wait until the price breaks and hold above the 50-day EMA. A more conservative option would be to wait until XRP reclaims the $0.5 resistance.
On the downside, short positions in XRP will not be viable until the price breaks and sustains movement below the 100-day EMA.
Additionally, market participants should keep in mind the potential support provided by the confluence formed by the 200-day EMA (purple) and the ascending trendline (dotted). If bears weaken this key support, we can expect XRP price to seek refuge at $0.43, not to mention the risk of sliding below $0.4.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
