By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Presently, the XRP cryptocurrency is the third one on the market in terms of capitalization, which is $12.8 billion. The XRP is currently trading at $0.2975. Unfortunately, this digital asset has been declining recently, testing local minimums, as well as other altcoins.
Anyway, Ripple has become a partner of MoneyGram, investing $30 million in the second-largest company in the field of money transmissions. The blockchain company is planning to invest $20 million more in the upcoming two years. Such cooperation may become a good help to the digital asset, so that the quotations may bounce off the nearest support level.
MoneyGram, in its turn, started using xRapid by Ripple, which received necessary liquidity, on August 3rd. Use of this product is the main condition of the bargain for $30 million. XRapid uses the XRP token for instant calculation of money.
According to the Ripple CEO Brad Garlinghouse, the company paid quite a high price for this bargain; however, in the long run, such cooperation may become much more important for the crypto community, than the Libra project of Facebook. The quotations of MoneyGram stocks have been falling momentarily by 80% to $1.39 from April to June 2019; nonetheless, since the start of cooperation with Ripple the quotations has been growing, the stock price at the moment reaching $3.88.
Anyway, partnership with MoneyGram is one of the quality ways of using the digital asset, which may influence positively the final price of the XRP; what is more, the company keeps signing contracts with various financial enterprises.
On D1, the quotations of the XRP remain inside the skewed triangle and are testing the support line. As long as the long-term tendency remains descending, the currency is going to keep declining, but only upon breaking through the support line and securing below it. The goal of the descending is near $0.1600. The declining dynamics of the MACD confirms the overall falling. However, if the bulls recover their spirits and decide to buy the cryptocurrency, a bounce to the resistance at $0.4348 may follow.
On H4 chart of the XRPUSD, the market has formed a short-term descending channel inside a mid-term one. Such a picture suggests subsequent breakaway of the minimum at $0.2894 and a decline to $0.2700. However, until a black cross on the Stochastic is formed, a breakaway of the local resistance and a rise to $0.3220 should not be excluded.
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.