Ripple (XRP) Runs Into Trend Line Resistance, Further Downside Expected

Things do not look good for Ripple (XRP) at all now that the price has run into a trend line resistance and faced strong rejection. The price was so close to capitalizing on the golden cross that is so close to being formed on the XRP/USD daily chart. However, the market does not seem to be ready for that just yet. In fact, most cryptocurrencies have already started to decline after running into trend line resistances. XRP/USD has not started yet because its growth this time has been somewhat slow compared to most other cryptocurrencies. Analysts believe this has to do with JPM Coin stealing Ripple’s thunder and there might be some truth to that, but Ripple (XRP) has already been on a roll for far too long and the price has now run into a global trend line resistance unlike most cryptocurrencies.

The trend line resistance that most cryptocurrencies have run into is the one that extends all the way back to November, 2018 but for XRP/USD this trend line resistance goes all the way back to the beginning of the downtrend. This is particularly alarming when you consider that if the price falls from current levels, it will have to enter a descending channel that will most likely be triggered by a flash crash. If the price declines straight below the pennant without holding the previous support, we could see a drop to $0.18 if not lower. Ripple (XRP) is one of the most well liked cryptocurrencies in the market that has a huge following. However, the recent developments involving the entry of JPM Coin in the crypto scene has placed big question marks over its use case.

Chart for XRP/BTC (1D)

A lot of investors and analysts seem to believe that there is plenty of space in this market for anyone and that if Ripple (XRP) was such a weak project why would JPM Coin feel the need to compete with it? That’s a good question but not good enough. Ripple (XRP) had an early mover’s advantage and it achieved a lot of success because of that but we have to understand that most of that was based on hype and even Ripple did not expect see itself making such a huge impact. This is why R3 and Ripple entered a legal battle when the price skyrocketed. If R3 believed that Ripple (XRP) is such an innovative technology why would they not protect their investments beforehand and why did they not care about it initially? That is also a very good question.

Do we believe Ripple (XRP) could rise to a new all-time high after finding a global bottom? Yes, we do believe that. However, we also believe that Ripple’s days of claiming to have an innovative solution to cross border payments are now long gone. Lest we forget, it is important to realize that Ripple Labs is just a business and marketing powerhouse. They are good at promoting themselves and getting things done. That does not mean that they have a strong development teams that is way ahead of everybody else in the market in this space such that other people might have a problem catching up with them. If anything, R3 is that technological powerhouse and if anybody wants to compete with Ripple, they could use R3’s help if they really need it.