XRP Price Analysis for May 8th – XRP Stuck in a Flat

By Dmitriy Gurkovskiy, author at RoboForex Blog

On Friday, May 8th, the XRP remains in a flat, slightly declining. It is generally trading at 0.2166 USD.

On H4, XRP/USD is correcting the previous declining wave, moving in a mid-term ascending channel. The quotations rose to 50.0% Fibo but a divergence on the MACD proved the necessity of a short-term pullback. Now the quotations are moving in a local correctional “wedge” and declining to the support line and the level of 0.2085 USD. They might break it away; a Black Cross on the MACD is giving a reason for it. The aim of the breakaway will be at 0.1710 USD. However, it might, instead, bounce off the support line and grow to 61.8% Fibo (0.2590 USD).

On H1, triangular patterns are forming on the price chart and Stochastic, confirming the consolidation. The quotations corrected the last wave of growth to 50.0% Fibo and are now squeezed between 0.2115 and 0.2220 USD. If the lower border is broken, the quotations may further decline to 0.2085 USD and 61.8% (0.2005 USD). A breakaway of the resistance level at 0.2220 USD, in its turn, will signal the development of a new wave of growth to the high of 0.2358 USD.

The ex-technical director of Ripple Jed McCaleb kept selling 1.8 million XRP tokens daily in April. On the whole, he sold over 54 million tokens, earning 11.5 million USD. However, he still has a serious amount of the coins in store as he has been among the major XRP holders from the start.

There is still an agreement between McCaleb and Ripple that the former may not sell the tokens at once not to destroy the rate. I.e., McCaleb may sell only a limited amount of coins each month. The agreement will most likely have expired by the end of 2020. The XRP rate does feel these sells but they are not critical.

Meanwhile, another claim was initiated against Ripple, accusing the company of deceiving investors. The problem is in some false statements by the head of Ripple Bradley Garlinghaus and his startup, breaching California legislation concerning securities, competitions, and advertising. According to the claimant, the only reason for creating the XRP is the enrichment of its owners. In fact, this is not the first such claim and, most probably, it will not be the last one.

Disclaimer: Any predictions contained herein are based on the authors’ 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.