Current trend

The XRP/USD pair has been falling for the second week in a row, as part of the overall market trend, trading around 0.5520 and under pressure after the fall in shares of semiconductor manufacturer Nvidia Corp.

Recall that the US Department of Justice suspected the company of violating monopoly laws and directly preventing customers from switching to other chip suppliers. During the week, officials sent legal requests to several companies, including Nvidia Corp., which is a step towards the start of official proceedings. This led to sell-offs not only in the stock market, but also in the cryptocurrency market, and the price of XRP reached five-week lows around 0.5326, but then some of the lost positions were restored.

Overall, the moderate decline in quotes continues, but its pace is restrained by the expectation of the publication of key August data on the US labor market on Friday. If it weakens further, US Federal Reserve officials may make the September easing of monetary policy more aggressive, which will lead to increased pressure on the dollar and growth of alternative assets. Otherwise, there will be no significant reason for a sharp decrease in the cost of borrowing from the regulator, and the quotes of leading cryptocurrencies may continue their negative dynamics.

In addition, the current slowdown in the decline of the XRP/USD pair is facilitated by comments from Ripple CEO Brad Garlinghouse: during the Korea Blockchain Week event, he announced the imminent launch of the RLUSD stablecoin, which is currently undergoing the final stage of testing on the XRP Ledger and Ethereum blockchains. The coin will be backed by US dollar deposits, as well as short-term US government treasury bonds. According to Garlinghouse, the launch of the stablecoin should take place within a few weeks, not months, as previously assumed. The appearance of RLUSD in the Ripple ecosystem should contribute to the further development of decentralized finance and digital cross-border payments.

Support and resistance

The XRP/USD pair continues to move within a stable sideways range of 0.5450–0.6146 (38.2% Fibonacci retracement – 61.8%Fibonacci retracement), and is currently close to its lower border, a breakdown of which will ensure a continued decline to the levels of 0.4883 (Murrey level [2/8]), 0.4300 (August lows area). The key line for the bulls is the central line of Bollinger Bands in the area of 0.5800, and if it is broken upwards, growth will continue to the upper border of the sideways range of 0.6146 and further to the target of 0.6836 (Murray level [6/8]).

Technical indicators allow for a further decline in quotes: Bollinger Bands are horizontal, MACD has moved into the negative zone, and Stochastic is reversing down.

Resistance levels: 0.5800, 0.6146, 0.6836.

Support levels: 0.5450, 0.4883, 0.4300.

Trading tips

Short positions can be opened from 0.5371 with targets at 0.4883, 0.4300 and a stop-loss at 0.5720. Implementation period: 5–7 days.

Long positions can be opened above 0.5800 with targets at 0.6146, 0.6836 and a stop-loss at 0.5530.