These are good times to be an active cryptocurrency trader. Even with the barest of knowledge, anyone can get a feel for how the markets are currently evolving and where things may head next. The recent XRP price momentum certainly took people by surprise, although the excitement might not necessarily be over just yet.
XRP FOLLOWS THE OVERALL TREND
It is always difficult to pinpoint an exact reason as to why the value of any currency, token, or asset is moving up. Over the years, it has become apparent most markets follow Bitcoin’s overall trend in one way or another. When the world’s leading cryptocurrency continues to rise in value, there is a good chance all other markets will follow a very similar path.
While most people would like to point at Ripple’s developments behind the scenes, it would appear that has little to do with this current price increase. It is good to see the parent company continue to forge ahead with its plans to revitalize the financial industry. However, that has very little to no impact on XRP’s price directly. More specifically, it won’t affect the public price of XRP, as Ripple’s partners are not buying this asset from places like Binance, Coinbase, or Poloniex.
XRP/USD TECHNICAL ANALYSIS
On to the good stuff for today. For this chart, we are looking at the XRP/USD ratio on Bitstamp, which tells a rather interesting tale. All of the indicators on this Tradingview chart are free to use and will not require a paid subscription to plot. At the bottom of the chart, we have the MACD indicator with standard settings. On the price part, there are Bollinger Bands with standard settings, as well as the RSI Strategy indicator with its default settings. This latter indicator is a personal preference and can be substituted for any other of one’s choosing.
By drawing basic support and resistance levels, we can see the XRP price has successfully bounced twice from its support level at $0.27497 in recent months. Financial markets have a long history in terms of revisiting old levels, which is exactly what happened in recent weeks. That level originally came into play for the last time in mid-September of 2018. Keeping a perspective on things is always crucial.
As of right now, there was some initial resistance at $0.36419, which acted as a support level in October of 2018. XRP blazed past that level with ease and is now attempting to break a “perceived’ resistance level at $0.45893. This is not necessarily an actual resistance level, but it is not a previous support value either. It is a point to which the value is drawn quite regularly. Breaking it successfully can yield a potential push to $0.50216, or in the best case, to as high as $0.56747. All of this will hinge on how bullish Bitcoin continues to be, as that remains a big unknown factor.
Based on the MACD indicator, it would seem another uptrend is forming. After spending a bit of time in the “oversold” part of the indicator, a very strong bounce has materialized which pushed the price higher as a result. This move seems more convincing than previous upward crosses, as those were all short-lived or potentially fake breakout signals. The last time an upward push of this magnitude took shape was in September 2018 when the value surged to $0.56747 in a few weeks. History could be repeating itself, but the value may continue to ping-pong between $0.45893 and $0.36419 if a successful break doesn’t materialize.
XRP/BTC TECHNICAL ANALYSIS
Things look somewhat similar over in the XRP/BTC department. While some may think that is automatically a given, the USD and BTC value of a market don’t always move at the same time, especially not in the cryptocurrency world. We use the exact same free MACD, RSI Strategy, and Bollinger Bands indicators on Tradingview for this daily chart, which also uses Bitstamp as its exchange.
XRP’s BTC value also received a much-needed bounce at the 0.00004229 BTC level. Similar to the USD chart, this BTC level came into play in September of 2018. Ever since the price bounced from that point, it reached a high of just under 9,000 Satoshi. This time around, it remains to be seen if things will ever get to such a level again. A lot of damage has been done in recent months, and the path to recovery is never an easy one.
So far, a few interesting price level can be identified. With a successful bounce off the 0.00004229 BTC level, a push to 0.00006450 seems somewhat plausible at this point. This particular level has acted as support during the previous uptrend, but later turned into a resistance level when the price broke through it rather quickly. Overcoming this hurdle may prove an interesting challenge. The second key level is situated near 0.00007176 BTC, which has acted as both supported and resistance in the past. Under the current circumstances, it is still a resistance level to overcome. Looking beyond that point won’t serve any real purpose, but the 0.00008643 BTC and 0.00009769 BTC levels are other key zones to keep an eye on in the future.
The MACD Indicator for XRP/BTC also shows a healthy desire to turn bullish in the coming days, assuming Bitcoin’s trend doesn’t fall apart. The market is in rather oversold territory for quite some time now and is showing signs of reversing course. This current uptrend is not an official confirmation yet, but it looks as if things could start to improve. Right now, it seems the uptrend will remain in place for another day, although one never knows what the next few hours may bring.
SPECIAL MENTION: THE ELDER RAY INDICATOR
Not too many cryptocurrency traders are familiar with the Elder Ray Indicator. It is by no means a requirement to determine the future XRP price or value of any other financial instrument. However, it is an “extra tool” to see how the comparison of bulls versus bears looks in the market at any given time. Over at Trading212, one can apply the Elder Ray Indicator to a handful of cryptocurrency charts, including the XRP one. Traders can never use enough indicators to seek confirmation of a current market trend.
When looking at this indicator, the blue line indicates the “bull power”, whereas the yellow line represents the “bear power”. Both of these values are often close together. At this time, both lines are moving up, which shows the market is in a healthy state. This is not a pump by a few traders, as there are plenty of people performing “bearish” actions to keep the overall growth in check. One can interpret this signal as an extra validation of how the uptrend can remain in place for at least another day. However, this situation can always change in volatile markets.
Pat Thelen, Ripple’s VP of Strategic Accounts, has been recently appointed as one of U.S Faster Payment Council’s (FPC) directors. He was also among the first elected board members of the Council. The list of the selected members was out on Monday and Thelen was chosen from a list of people in the larger technological sector industry. Thelen will be serving a one year term.
The appointment of the directors, including Thelen, was met with a lot of positive reaction online. This enthusiasm was shared by the Council itself, whose Executive Director and interim board Chairman, Kevin Christensen, said“The new board represents the industry’s inclusiveness which is an integral part of the organization.”
FPC is leading the way for presenting avenues for faster payment methods. Hence, Thelen and other representatives on the Council are expected to take greater initiative in fulfilling the Council’s objectives. Ripple was created for a similar goal, with XRP born to do transactions at a faster speed than what Bitcoin, or any other present-day payment settlement system, is doing.
With Pat Thelen becoming a part of the FPC, many doors and opportunities are now open to Ripple, XRP and companies in the field of making global payment settlement more secure, quicker and more accessible for a diverse set of consumers. With CEO Brad Garlinghouse claiming that he did not expect banks and governments to be “obliterated by new technologies,” Ripple’s work within the FPC may accelerate its goal to reduce the friction in global commerce.
With Ripple now as a part of FPC, it has also opened doors for other cryptocurrencies as well. The FPC is a newly-formed organization, one that aims to provide a platform for Americans to do transactions in a safe, instant and cost-effective manner.
The founder of Gokhshtein Magazine, David Gokhshtein is a very big XRP supporter and thinks that Ripple is placing themselves in the perfect position to infiltrate the international financial system.
Banks across the world are toying with the idea of creating their own cryptocurrencies. These bank-backed stablecoins would act as intermediaries between fiat and crypto for institutions and some individuals.
According to Gokhshtein, as these financial giants wade into the crypto waters, they’re going to find to be easier, cost-effective and more efficient to use the Ripple-built infrastructure.
It costs the banks less to partner up with $XRP than it does for banks to create their own #crypto.
Gokhshtein has advised his followers that banks and other big financial institutions will not allow themselves to become obsolete. These more than powerful firms will get used to the current financial season, so to speak and maybe crypto will become a hot topic soon.
“Bottom line: banks aren’t going to fade out. they will always find a way to adapt to the current environment. That being said; @ripple has the perfect system in place for them and that’s why most of them are teaming with them.”
In fact, Ripple is already helping people and companies to send money across the globe in a more effective way.
Brad Garlinghouse and the rest of the team at Ripple are excited about Ripple has been experiencing. The Swiss National Bank Conference Garlinghouse explained the impact Ripple’s xRapid can bring to people and businesses across the world.
“People are getting liquidity th
at exists in the marketplace in local regions between XRP and the Philippine peso, XRP and the Argentine peso, XRP and the Brazilian real. And it’s tapping into that liquidity that exists in the marketplace.”
With more institutions a starting to love Ripple for similar reasons to Gokhshtein’s tweets, adoption is being pushed in a way it has never been before.
Ripple price found a strong support near the $0.3800 level and recently moved higher against the US dollar.
The price is now placed above the $0.3950 and $0.4000 levels and it could continue higher.
Yesterday’s highlighted major bullish trend line is intact with support near $0.3950 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair remains well supported and it could continue to rise above the $0.4100 resistance area.
Ripple price is trading in a bullish zone against the US Dollar, while consolidating vs bitcoin. XRP is likely to climb above $0.4200 as long as it is trading above the $0.3920 level.
Ripple Price Analysis
After a sharp decline, ripple price found support near the $0.3800 area against the US Dollar. The XRP/USD pair traded as low as $0.3802 and recently started an upward move. There was a break above the $0.3920 resistance and the 100 hourly simple moving average. The price slowly moved above the $0.3950 level and the 23.6% Fib retracement level of the downward move from the $0.4300 swing high to $0.3802 low. Moreover, there was a break above the $0.4000 level.
Finally, the price spiked above the $0.4050 level and the 50% Fib retracement level of the downward move from the $0.4300 swing high to $0.3802 low. The price tested the $0.4110 level and the 61.8% Fib retracement level of the downward move from the $0.4300 swing high to $0.3802 low. If there is an upside break above the $0.4110 and $0.4120 levels, there could be more upsides in the near term. The next key resistance is near the $0.4200 and $0.4220 levels.
On the downside, there is a strong support forming near the $0.4000 and $0.3980 levels. More importantly, yesterday’s highlighted major bullish trend line is intact with support near $0.3950 on the hourly chart of the XRP/USD pair. As long as the pair is above the trend line, it could climb above the $0.4050 and $0.4110 resistance levels. Conversely, if there is a downside break below the trend line, the price could extend losses below $0.3920.
Looking at the chart, ripple price is trading nicely above the $0.3950 support area. Only a close below the 100 hourly SMA is likely to open the gates for more downsides in the near term. Otherwise, the price is likely to trade towards $0.4200 and $0.4220 in the coming sessions.
Hourly MACD – The MACD for XRP/USD is slowly gaining momentum in the bullish zone, with positive signs.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level, with neutral signals.
Major Support Levels – $0.3950, $0.3920 and $0.3800.
Major Resistance Levels – $0.4050, $0.4120 and $0.4200.