Ripple price (XRPUSD) is still consolidating around 0.200 as traders wait for more clarity. Other cryptocurrencies, like Bitcoin and Ethereum too area also struggling to find direction. Bitcoin in particular has struggled to move above $10,000.
Digital payment momentum leaves XRPUSD behind
The coronavirus pandemic has led to significant disruption in the payment sector. Most public payment companies said that the volume of transactions declined significantly in the first quarter. Similarly, the World Bank has warned that remittances will decline by more than 20% this year. This 20% is equivalent to more than $100 billion.
At the same time, the need for digital money transfer methods has been rising. There is evidence that more firms are now interested in Ripple. According to decrypt, Ripple, the company behind XRP, has signed 50 more financial institutions since November last year. This brings the total number of its partners to more than 350. These companies are attracted to Ripple’s technology, which increases the speed of transactions from days to 30-60 seconds.
Meanwhile, Ripple price has been affected by the ongoing lawsuit in San Francisco. The suit alleges that the CEO committed fraud by encouraging people to buy XRP when he was actually selling them. In court documents, the company said that the case does not meet the right threshold because of two reasons. It does not show how fraud was committed and it does not show that the CEO knew that he was misleading people.
Ripple price is down by about 0.64% today and is trading at $0.2020. On the daily chart, the price has formed a symmetrical triangle pattern, which means that a breakout could happen in the near term. The price is also along the 38.2% Fibonacci retracement level and along the 50-day EMA. The likely scenario is where the price drops below 0.20 as bears attempt to test the May 10 low at $0.1744.
On the flip side, a move above the upper resistance level at $0.2110 will invalidate the bearish thesis. It will send a signal that there are more buyers in the market, who will attempt to test the 200-day EMA at 0.2200.