Ripple Price Analysis: XRP Fights Crucial Resistance For A Massive Bullish Impulse

Ripple seems to be getting ready for the much-awaited breakout toward $0.75 (2021 high). Support at $0.35 played a vital role in stopping the massive freefall from extending further. Meanwhile, XRP is looking forward to a substantial breakout as long as the Simple Moving Average (SMA) on the 4-hour chart is broken.

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Ripple’s On-Demand Liquidity takes root in Mexico

Mexico is the fastest growing cryptocurrency market globally. Ripple is at the forefront of ensuring that the 125 million unbanked people have a smooth path in and out of crypto. Daniel Vogel, CEO of Bitso, in a recent interview with Ripple’s CTO David Schwartz, said:

We want to make sure that people can go in and out of crypto…seamlessly using our rails.

On-Demand Liquidity is a service that allows fiat currency conversion using crypto technology. In our case, we’re assisting in converting US Dollars to Mexico Pesos, where the digital asset XRP is a bridge currency. We’re processing close to 10% of the remittances from the US to Mexico through ODL.

Ripple price on the brink of a breakout

XRP is trading at $0.42 after bouncing off support at $0.4 and settled above $0.4. The 50 SMA is limiting price movement on the 4-hour chart. However, a breakout above this level may trigger a potential breakout targeting $0.75. The Relative Strength Index appears to validate the uptrend on crossing past the midline.

(Click on image to enlarge)

XRP/USD 4-hour chart

XRP/USD 4-hour chart

Following the nerve-shattering breakdown last week, Ripple experienced an exodus of whales. It was believed that investors timed the breakout to cash out for profit after the December freefall.

Santiment’s holder distribution tool highlights the return of the whales but at a gradual rate. For instance, since February 1, holders with XRP between 1 million and 10 million have increased by 30 only. In other words, recovery due to the return of whales is consistent but gradual.

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Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

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