The Ripple price remains in range mode in a bearish formation at the turn of the New Year.
Overall, the trading community remains optimistic about what lies ahead amid Ripple’s programmed decentralization strategy.
In 2017, there was a growing concern that Ripple’s power was concentrated on XRP ownership and node control.
Since then, there has been an ongoing decentralization strategy where coins were consistently moved from escrow.
Ripple’s Continuous Decentralization
On January 1, 1 billion of XRP were automatically moved a chunk, 20 million XRP, moved to each of Ripple’s On-Demand Liquidity (ODL) partners.
Coins Ph, its partner in the Philippines, received 20 million XRP.
🚨 20,000,000 #XRP (16,117,493 USD) transferred from unknown wallet to #CoinsPhhttps://t.co/pO54JYa2KJ
— Whale Alert (@whale_alert) December 31, 2021
At the same time, a similar amount was moved to Bitstamp.
🚨 20,000,000 #XRP (16,117,493 USD) transferred from unknown wallet to #Bitstamphttps://t.co/Is99qq6Nnu
— Whale Alert (@whale_alert) December 31, 2021
For its European operations, Ripple has joined hands with Bitstamp, a regulated exchange incorporated in England and Wales.
In both cases, these centralized exchanges allow for the seamless flow of funds for users of ODL.
Another portion covers Ripple’s operational expenses, which fluctuate depending on their activity. The balance of around 800 to 900 million XRP coins is channeled back to Ripple’s escrow account.
Ripple’s ODL Competes with SWIFT
The ODL solution is an alternative for SWIFT, a centralized solution that helps banks move over $1.45 quadrillion annually.
Ripple supporters are hopeful that if ODL, which uses XRP—a listed currency influenced by supply and demand—captures even one percent of SWIFT’s market share, XRP’s price could skyrocket, thrusting the coin to be the world’s most valuable, flipping BTC in the process.
Ripple Price Analysis
Currently, the XRP price is within a tight trade range below $1, reading from price action in the daily chart. Although there are efforts to reverse losses, the path of least resistance is southward.
Thus far, XRP/USDT price action is within the sharp losses of December 28 and 29.
Despite higher highs relative to the lower BB–signaling strength, this formation swings to favor sellers in the short term.
As such, how XRP prices react at $0.80—a critical support line flashing with around the September 2018 highs—is vital. If XRP bulls flow back, thrusting prices above $0.90 and ideally $1, the coin could fly.
However, deeper losses from spot rates below $0.80 may force the coin back to $0.75 and $0.61—December 4, 2021 lows.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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