XRP Price Analysis for July 24th – XRP on a Pause

By Dmitriy Gurkovskiy, author at RoboForex Blog

On Friday, July 24th, the XRP is declining after previous growth, trading near 0.2036 USD.

On D1, XRP/USD keeps declining. The quotations have bounced off the upper border of the channel and now rest near 38.2% Fibo. The nearest aim of the decline is still 23.6% Fibo; if the price breaks it away, the downtrend may continue to the next level – 0.0%. The MACD histogram is above zero – this is the reaction to the previous wave of growth to the resistance level. The aim of the decline is near 0.1734 USD.

On H4, the pair repeats the picture of D1 and keeps declining inside the descending channel. The cryptocurrency is testing the resistance level; a bounce off it will mean the end of the correction and the development of the downtrend. The Stochastic has formed a Golden Cross between 20 and 80, which may mean the ascending impulse is weak. The aim of the decline is the support level at 0.1734 USD. Despite the news, tech analysis still indicates a downtrend in the long run.

This week, Peter Brandt compared the XRP to the USD: he demonstrated connections between the actions of the Fed, the reaction of the dollar, and the behavior of the XRP.

According to Brandt, the Fed is managing the money stock in the USA; this decade, it has increased by trillions of dollars. By 2021, the Fed’s balance is expected to have grown to 10 trillion USD due to the massive stimulation of the US economy. Some economists say that printing new money at the level of the Fed is unreasonable: the economy needs to return to certain standards, such as gold. However, Brandt is sure that it is useless.

Brandt explains that Ripple is unblocking 1 billion of XRP tokens monthly, sending the mass of money to the market or spreading among wallets. The official position of Ripple is to avoid influencing the rate of the token. Curiously, Brandt used to consider the XRP fully under the control of Ripple and blamed the company for manipulating the price. It seems like the position of Ripple has changed along with the market itself.

Disclaimer

Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.