XRP is going through tough period, but price breakthrough might be around the corner

By Selena 03/9/23 5:02 PM

The upper border of the descending price channel has been a major barrier for XRP, pushing the asset lower for the last 45 days. But most recently, XRP experienced a sharp increase in trading volume of 680 million, which suggests a likely breakthrough from the channel. Although this is good news for XRP, it does not necessarily mean the rise would pick up speed.

Despite the barrier, XRP has already increased in value by almost 5% over the last two days, suggesting that a breakout may be imminent. Three important targets could be attained by XRP soon if it can effectively exit the downward price trend.

The 200-day moving average at $0.4, historically serving as a support level for XRP, would be the first target. The second objective would be the previous breakdown point at $0.5, which would be a problematic resistance level for XRP to pass. Third in line would be the local cycle, which peaked at about $0.55.

There is no assurance that XRP will successfully break out of the descending price channel, even though trading volume has significantly increased and the coin is very close to a potential breakout. Furthermore, even if XRP successfully breaks out, it might have trouble achieving its subsequent goals.

Ripple advances CBDC compatibility

Developers were urged to create central bank digital currency (CBDC) apps employing Ripple’s technology in retail, interoperability, and financial inclusion as part of a CBDC Innovate Challenge sponsored by Ripple in 2022. Retail users can make payments in various currencies, including CBDCs, cryptocurrencies, and stablecoins, using the XRP Ledger-based SpendTheBits (STB).

90% of central banks are exploring #CBDCs. This tech continues to gain traction with benefits that can stimulate economies, including:
👉 Superior transaction efficiency
👉 Financial inclusion

Read more on the various use cases across industries. https://t.co/jgYfLxgF2K

— Ripple (@Ripple) March 7, 2023

The SpendTheBits app combines a CBDC portal, a mobile and merchant app, and an exchange portal for interoperability and liquidity. Regarding creating a CBDC, Brooks Entwistle, managing director of Ripple’s APAC and MENA regions, recently revealed in an interview that the business was in discussions with more than 20 central banks.

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