The Ripple-to-Dollar (XRP/USD) exchange rate on Friday was the earliest to recover from its latest downtrend move. It surged as much as 19 percent from yesterday’s low at 0.377-fiat, which is higher than other top coins.
Ripple, the company that issues XRP tokens, is reportedly heading towards forming a partnership with SWIFT, a global banking protocol. Spain-based Santander, one of the Ripple’s partners, has partnered with SWIFT to expand its banking services to Argentina, Poland, Spain, and the United Kingdom. Ripple is scheduled to attend SWIFT’s SIBOS 2018 Conference this year where both the payment protocol organizations could enter an agreement.
XRP/USD, meanwhile, has formed a new intraday high towards 0.449-fiat and is in a pullback action at the time of this writing.
The beginning of XRP/USD pullback action has brought the previous intraday low in sight, with 0.402-fiat providing an intermediary support to hold the near-term uptrend. XRP/USD is now capped by a near-term descending trendline, which also brings potentially profitable long opportunities on a bounce back from the said support. It should not be forgotten than XRP is still inside a strong bearish bias and the recent recovery could only be a knee-jerk reaction to the SWIFT fundamental. The pair is still trading below its 50, 100 and 200H SMAs and the RSI is showing signs of an extreme pullback action towards the strong selling area.
The Stochastic Oscillator is also pulling back the pair from its overbought region, signaling a downtrend towards 0.402-fiat.
The range we are watching out today has 0.444-fiat acting as interim resistance and 0.402 as interim support. The pullback from resistance has already allowed us to speculate a short towards 0.402-fiat. As we exit our position, we will enter a long one towards the resistance on a bounce back from support, while maintaining a stop loss order just marginally below the entry level.
In the case of a breakdown action, in which XRP/USD breaks below the support level, we would enter a short towards 0.378-fiat, our intraday low and primary downside target, while keeping a stop loss order near 0.376-fiat. It would define our risk management perspective.
An extended upside action, in the meantime, is also in cards if price closes above 0.444-fiat. If it happens, we will enter a quick long position towards 0.464-fiat, also in hopes of establishing an inverse Head-and-Shoulder formation. In this position, a stop loss around 0.424-fiat will protect our risks.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 5:09 PM UTC