- Ripple (XRP) price holds above $0.21 after suffering rejection at a tough resistance area at $0.2300.
- The price of the digital asset has broken the daily 200 moving average in the past week to set a fresh 2 months high.
- Ripple (XRP) could be poised for more upsides if it manages to hold above the $0.20 trading area. A potential break below this region will trigger a massive selloff.
Ripple (XRP) has attracted so much criticism for purportedly being the banker’s crypto. In addition to that centralization concerns have also trailed the digital asset. Despite this negative sentiment, the digital payment powered cryptocurrency has continued to strive. Though it was recently overtaken by USDT, it still sits as the fourth biggest crypto asset by market capitalization.
XRP seems to have regained traders’ confidence after breaking the 200 MA, this price analysis is a crosssection analysis of XRP price movement, and takes a critical mapping of the bullish and bearish scenarios.
Current Market Sentiment For Ripple’s Price Analysis
“Market prices of XRP and other crypto assets are indeed a reflection of public confidence in them, and not determined by the manipulation of whales” stated Ripple’s CTO David Schwartz, he further added, “in cases of too high or low prices, large traders will accordingly sell or buy the asset, pushing it to a fair price.”
While the statement is fairly true, it doesn’t hold enough waters for short term trading. However that is fairly accurate in long term trading. The price of a crypto asset becomes a mirror reflection of the fundamentals backing the asset.
The week opens with a bullish sentiment in the cryptocurrency market, with Bitcoin hitting $11K and Ripple (XRP) now sitting above $0.2204 after reaching 3-months high of $0.22953. Before the weekend rally, ripple had continued to trade within a bearish range following strong resistance around the daily 200 moving average.
February’s short-lived surge was the only time that XRP/USD has traded above the 200MA in more than 12 months. Since then, the digital asset hasn’t matched the taste of bullish traders. During this period, Ripple has found a comfort zone trading between the $0.17 and $0.21 range before the weekend surge that started on July 25th.
XRP capitalized on the Bitcoin’s bull moment and managed to push back above the $0.2 resistance last weekend and is currently trading above this area. The crypto asset had encountered a tough resistance area at $0.23 which signals a short term bearish momentary retracement. The rising 20-day Exponential moving average around the $0.20 trading area suggests that the bulls are in command.
After breaking the daily 200 MA, XRP/USD now sits close to a fresh 3-months high accompanied by a huge buying interest. It’s safe to assume XRP has found a new support area above the $0.22 price mark momentarily.
In early July, Ripple announced its plans to tap into the APAC market with the next ODL corridor and just recently Ripple Exec unveiled an XRP powered P2P Payments Platform. The recent developments within the ecosystem have silently been setting the stage for XRP rally and it might be poised for more upsides with the current bearish market trend.
Bulls: XRP/USD Upside Price Analysis
There is a local resistance area located at $0.235688 price mark which led to a sharp rejection, but it is likely to scale. To maintain a bullish price movement, it will have to stay clear of the triangular area that houses the major support zone.
As such, to sustain the bullish momentum, it must maintain a price movement above the $0.20 trading area. This is a critical region as it houses the rising 20-day exponential moving average (EMA) located at $0.20. If the XRP/USD pair is continuously maintained at this price range, a break above the $0.236 major resistance area could be imminent.
Bears: XRP/USD Downside Price Analysis
Flipping the bullish side, if the bears sink and sustain the XRP/USD pair below the neckline, it will be a huge negative. This could result in a drop to $0.188499 as traders who had bought following the breakout of the triangular trendline might be forced to recover their positions.
The likelihood of a potential drop below this neckline is very slim. However a massive selloff in the entire market could amount to a full-blown bearish movement. Needless to say Bears will be keeping their eyes fixed in this area for a potential breakdown.
About Ripple (XRP)
Ripple is a real-time gross settlement system (RTGS) developed by the Ripple company. It is also referred to as the Ripple Transaction Protocol (RTXP) or Ripple protocol. XRP is the ticker name for Ripples, the native cryptocurrency of the Ripple platform.
The platform is widely used by companies such as UniCredit, UBS, and Santander and a bunch of other banks and payment services who deploy the settlement infrastructure technology because of the payment’s speed within the network and the stability of the technology.
This is the third in a series of price analyses that Secure Digital Markets is releasing to keep our readers up-to-date on what’s happening in the markets.
