Ripple (XRP) Loses Key Support Level, Can Thailand’s SCB Bank Help it Out?
The Ripple (XRP) price has fallen below the key $0.40 support level that it’s been holding throughout this week, indicating a potential trend reversal. After a drop from $0.44 on June 4th, XRP has been trading sideways in the $0.40 range. However, after a brief second dip below $0.40 yesterday, XRP has now breached the support level for the third time. The trend has put XRP into a closing triangular pattern that looks increasingly likely to break out in a downward direction.
Thailand’s Siam Commercial Bank further hints at Ripple Partnership
On the plus side, Thailand’s Siam Commercial Bank (SCB) has further hinted at the adoption of the XRP system in a tweet yesterday that simply stated: “XRP system will be announced soon.” While the tweet appears to have been removed since, the bank has been investigating the use of XRP to improve its international remittance processes for several months now, with prior announcements made in both March and April this year.
The bank is the oldest bank operating in the Kingdom of Thailand, with total assets to the value of 3,187,340 million baht (over $100 billion). There has been some confusion regarding whether or not the bank will use only Ripple’s technology or will also incorporate the XRP token. While specific clarity on this remains uncertain, the developments will undoubtedly have a positive effect on the XRP price, even if indirectly via Ripple.
In other news, a Philippines-based blockchain firm called SendFriend has confirmed it will begin using Ripple’s xRapid product to facilitate its operations. Reports suggest that its xRapid integrated system will be launched later this month.
Ripple (XRP) Analysis
Without a significant injection of volume to push XRP back above $0.40, the coin will likely see further losses before a recovery. XRP doesn’t usually suffer from the same volatility as Bitcoin, so initial support should stay tight above $0.39 for now. A break below this level could continue a drawn-out decline to $0.35, with the previous continuous trading range of $0.30 offering low-level support.
Any upward movement will likely be knocked back at the previous high of $0.46, which in the long-term could form an ascending triangle pattern and the potential for a break above in early July.