XRP Faces Tough Battle against Selloff

On Friday, Sept. 7, the Ripple price (XRP) is recovering, although the intraday outlook is still mixed. Ripple is trading around 0.2905.

Fundamentals

XRP news are mostly neutral. This week, TransferGo launched a payment channel to India based on XRP technology, which will enable real time transactions.

The channel is going to be available across Europe and, going forward, will enable avoiding most current payment methods where transactions take around two or three days. It is yet unknown which XRP product TransferGo is using, but the reason for basing the transactions on XRP is quite clear: this token is very widespread in India and opens the door to unlimited opportunities there.

Another payment service being launched by TransferGo is also based on XRP. Although it is a bit slower, it is going to be completely free of charge.

Ripple CEO Brad Garlinghouse said this week that there was no point in replacing fiat currencies with cryptos. Regular money does its job quite alright, he added. In order to contest this point the speed and usability digital money must get much more effective, and while cryptocurrency can function well for overseas transactions, it is still not that useful for everyday payments.

Technical Analysis

With the latest XRP fall, a downtrend has been formed, while the channel support test led to a temporary bounce-off. Currently, there is a new downward wave forming. In case the support at 0.2780 gets broken out, the downtrend will continue with the price moving to the lower projection channel towards 0.2140.

On H1, XRP is finishing its local correction uptrend and forming an inside downtrend channel. Once the support at 0.2780 gets broken out, the new channel support and the key low at 0.2365 is going to be the next target. Meanwhile, the local resistance is at 0.3036.

Analysis by Dmitriy Gurkovskiy, Chief Analyst at RoboForex

Featured Image from Shutterstock

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