XRP Licks Wound After Dollar Rally Triggers Crypto Crash

XRP Faces Pressure Despite Resilience

XRPUSD is wobbling just above the $0.52 area after a slump in the crypto market, which erased $2 trillion. After reporting no change in employment reports and wage growth, the rally in the US dollar resulted in a weighting of stocks, crypto, and other risk assets.

However, the ripple shows resilience and finds a bottom after hitting the psychological mark near $0.50. Ripple’s effort to augment its XRP Ledger’s programmability gives it an edge to sustain. Developers can create custom transaction logic to help integrate various dApps, DeFi, and NFTs on the XRPL. The increased utility of XRP has fostered greater interest among developers and the crypto community.

Ripple has gained the leverage to capture highly efficient and low-cost transactions, solidifying its potential in the DeFi space. Ripple also enhances its interoperability through the upcoming XRPL Ethereum Virtual Machine (EVM) sidechain, which may allow a seamless transfer of assets to more than 55 blockchains.

Despite all these positive developments, XRPUSD experiences intense selling pressure. According to CryptoQuant data, the exchanges see a strong surge in the supply of XRP, showing the whales are offloading a substantial amount. Like one transaction amounting to $49 million worth of XRP, they resulted in a sell-off momentum. Increased supply and surge in retail trading activity suggest that the asset may face strong resistance in the near-term horizon.

The long-term scenario suggests that the real hurdle for XRP is still the battle with the SEC. The Ripple Co-founder has reportedly offered his support to presidential candidate Kamala Harris. Hence, US election results may also impact the future of XRP.

XRP/USD Technical Analysis

The daily chart shows that the XRP price remains within the middle of a price range between $0.65 and $0.43. The technical indicators like moving averages and Bollinger Bands suggest a bearish momentum. Hence, the likelihood of testing the $0.43 support is relatively high. Since the price found temporary support at $0.50, it may consolidate until it finds a fresh wave of sellers to break the level. On the flip side, if the XRP finds fresh bids and moves above the Bollinger Bands, it can test the immediate support at $0.60, followed by $0.65.

The 4-hour chart clearly shows the asset formed a top at $0.65 on August 24, and since then, it has fallen in a downtrend channel. Attempts to break out of the channel have remained unsuccessful so far. However, the reversal may occur once the prices break out of consolidation. The immediate resistance lies at $0.54, ahead of $0.57.

The hourly chart shows a slightly different scenario. It shows a strong bounce-off from the $0.50 level, currently consolidating around the upper Bollinger Band. The resistance levels on the hourly chart are $0.5330 and $0.5450.