Ripple (XRP) price has fallen nearly 8% this week as the sellers take control of the price action. The sellers have been working on a specific bearish chart pattern that could eventually take the price action to low $0.20s.
Fundamental analysis: 20% of RippleNet transactions is based on XRPAsheesh Birla, Senior Vice President of Product and corporate development at Ripple, has stated that 20% of RippleNet transactions are performed with XRP token.
“Our On-Demand Liquidity (ODL) product using XRP as a bridge currency accounts for nearly a fifth of all transactions on RippleNet,” said Birla in a tweet, and posted the following chart:
The RippleNet global payments network doesn’t normally leverage XRP, but the users can choose to use it and the transaction volume of the network remains unknown. Ripple’s on-demand liquidity (ODL) solution, however, leverages the token by default.
Nearly a year ago, Ripple stated that over two dozen of its clients use the ODL solution, including some notable customers such as MoneyGram and Viamericas. However, the majority of customers reportedly receive some kind of stimulus from Ripple to use the ODL.
Ripple rolled out the ODL solution last year and according to the company, there have been over “7x the number of transactions using ODL from the end of Q1 to the end of October.”
At the moment, markets that support Ripple’s ODL are Mexico, the Philippines and Australia. The firm has recently announced that ODL will soon come to the Brazilian market as well as other places in Asia-Pacific (APAC), Europe, Middle-East and Africa (EMEA) and Latin America (LatAm). The ODL is expected to come to those countries later this year.
On the other hand, RippleNet, has experienced “10x year-over-year growth in transactions,” the company said last November. The company also said that its clients have exceeded the 300 mark.
Brad Garlinghouse, Chief Executive of Ripple said that utilizing XRP “to solve a real-world, $10T problem, like cross-border payments, is working.”
Technical analysis: A potential double top chart patternXRP/USD has pulled back this week to trade almost 8% lower. The price action has created a bearish weekly candle that is likely to close below the 100-WMA at $0.2930. Hence, it is likely that we will see a continuation of the pullback in the week ahead as XRP buyers have lost control.
XRP/USD daily chart (TradingView) What is even more worrying for the buyers is the fact that two equal tops have been put in place recently. If the price action breaks below $0.27, which is where the previous correction ended, that would activate the double top pattern. In this case, the target for the sellers is $0.2140.
SummaryRipple price has corrected lower this week as sellers take control of the price movements in the short term. Separately, Ripple’s Senior Vice President said that 20% of RippleNet transactions are performed using the XRP token.
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