Hacking News Ripple Price Analysis: When Will XRP Finally Break Out?

Published on April 18th, 2019 📆 | 1545 Views ⚑


Ripple Price Analysis: When Will XRP Finally Break Out?

XRP has a commanding hold of the no. 3 spot in the crypto market index, but has lagged behind its large-cap peers in terms of growth. With the exception of a brief burst higher two weeks days ago, the so-called banker’s cryptocurrency has struggled to make a convincing breakout. Our trend analysis shows an imminent breakout depends largely on XRP’s ability to overcome a major supply zone.

XRP/USD Price Analysis

The value of XRP rose 1.6% on Wednesday to $0.3326, according to Bitfinex. Since peaking near $0.3700 in early April, XRP has given back roughly 9% of its highs. Trade volumes have climbed back above $1 billion, up 20% in the last 24 hours. Its market cap currently holds just below $14 billion, putting it well ahead of bitcoin cash (BCH) and the other altcoins.

The cryptocurrency has gained less than 5% over the past month, a period that has seen most of the large-caps return high double digits. During that stretch, the crypto market as a whole has gained nearly $40 billion.

Year-to-date, XRP’s performance has been less than stellar. It started the year trading above $0.3500 and now resides 5% below that level.

From a technical standpoint, the picture hasn’t changed very much. XRP continues to face strong resistance between $0.3300 and $0.3500, which is a known area of supply. It has not traded firmly above that region since early January. As we mentioned earlier, it peaked near $0.3700 in April but quickly reversed course to fall back within the aforementioned supply range.

Based on the daily relative strength index (RSI), XRP is likely to resume its range-bound posture for the foreseeable future. Should XRP attempt another breakout, the bulls will need to clear the April high en route to the psychological $0.4000 region. Beyond this point, resistance would be eyed right around $0.45000.

Coinbase Effect Falls Short

XRP’s underperformance is perhaps surprising given its recent addition to Coinbase, one of the world’s largest crypto exchanges. After years of speculation (both positive and negative), XRP finally got the Coinbase treatment in February.

“Coinbase is sometimes regarded as the “gold standard” for U.S. cryptocurrency trading because it allows users to purchase their favorite asset instantly using fiat money. Many traders would dispute that claim given the customer service issues that have long dogged the platform.” – Hacked.com (February 25, 2019).

Despite this significant achievement, XRP has not managed to use Coinbase’s instant fiat purchases to ride new highs. The announcement, which was made in late February, triggered an initial spike for XRP. However, the rally was met with resistance at the previously noted supply zone.

Global Expansion Continues

If you’re a believer in XRP’s fundamentals, you may be inclined to assert that the coin is significantly undervalued. Case in point: Asheesh Birla, the senior vice-president of Ripple, recently announced a global expansion plan for xRapid, the XRP-powered remittance platform.

During an ask-me-anything session hosted by Ripple colleague Ginger Baker, Birla said Mexico and Philippines are powerful case studies for the company’s cross-border technologies. In both jurisdictions, xRapid has increased on-demand liquidity and made it easier to send money around the world without having to rely on outdated legacy systems.

From here, Ripple is planning to expand its xRapid solutions across the globe. In the United States, the company has partnered with crypocurrency exchange Bittrex to enable real-time payments between banks.

It remains to be seen whether XRP’s vast partnerships can translate into sustainable growth for the cryptocurrency. One thing is clear: CEO Brad Garlinghouse believes banks will start using xRapid by the end of 2019. If that’s the case, Ripple’s plan to conquer the global payments arena will take a big step in the right direction. This is likely to be reflected in the coin’s price, especially if the broader cryptocurrency market continues to emerge from the prolonged bear trend.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

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