Ripple’s XRP token is beginning to show signs of an attempted recovery after falling by 10 percent earlier today. After peaking at $0.423 early this morning, XRP fell into a deep decline following a similar crash by Bitcoin (BTC) and fellow cryptocurrencies.
In the space of just two hours, the XRP price dropped to $0.35 before getting a minor boost from some buying volume and recovering to $0.39. However, resistance at $0.40 proved too much for the asset and its declined continued all the way down to $0.357.
Now it appears a mild recovery is on the books, with XRP steadily increasing over the past few hours to regain two percent value and climb back up to $0.0387. A definitive trend reversal is not yet confirmed but the move indicates that XRP may be over the worst of the decline.
Where to from here?
The decline is not altogether unexpected since XRP has been in an increasingly overbought position since it began its bull run earlier this week. Wednesday saw Ripple’s XRP token take off on an epic rally that continued into Thursday and eventually reached a high of $0.476 – only just shy of the significant $0.50 price level. Extreme price increases such as these are usually unsustainable in the long run and analysts immediately began predicting an incoming correction.
Bitcoin was the first to retrace yesterday, with the majority of altcoins following close behind. XRP’s decline has been more subtle than others though and positive news sentiment might be enough to keep in the green. Despite today’s minor crash, XRP remains up 24 percent over the week.
What are analysts saying?
There is a fair argument for further declines from XRP, as analyst Jefe Caan points out on CryptoDaily, RSI remains overbought and the possibility of a ‘death cross’ is looming (when the 200-day moving average (MA) drops below the 50-day MA). In this scenario, it’s possible XRP could drop as low as $0.15 in price.
However, sentiment in the news remains strong, with Inc.com recently voting XRP as one of the 346 best places to work in 2019. This has no doubt helped to keep the price up, and XRP’s recent recovery is now very close to breaking back above $0.40. A continued uptrend that holds support above $0.40 would indicate a fresh wave of buyers entering the market and potential for further growth.
XRP is currently trading at $0.391 with a market cap of $16.5 billion.
Ripple price analysis: XRP/USD on course of recovering Tuesday’s losses
- XRP/USD went up from $0.295 to $0.309 this Wednesday.
- The relative strength index (RSI) bounced up from the oversold zone.
XRP/USD went up from $0.295 to $0.309 this Wednesday, on course to recover this Tuesday’s losses wherein it went down from $0.312 to $0.295. The 60-min intraday chart shows that the price went up to $0.321, where it met resistance and went back down to $0.309.
XRP/USD daily chart
The daily price chart is trending just above the lower curve of the 20-day Bollinger band, showing that the price is not undervalued yet. The price is also trending below the 200-day simple moving average (SMA 200), SMA 50 and SMA 20 curves. The moving average convergence/divergence (MACD) indicator shows sustained bearish momentum. The Elliot oscillator shows eight straight bearish sessions. Finally, the relative strength index (RSI) bounced up from the oversold zone.
Are BNB’s gains and XRP’s losses a reflection of the market demanding rational, transparent monetary policies?
On the road to create the perfect cryptocurrency that records the highest adoption rates, some players have gone off track from its foundational “transparent” upbringing. This was duly noted by many in the cryptocurrency community and proven by a graph representing cryptos’ liquid market cap.
Owing to Binance’s efforts to promote its in-house token, BNB led the chart in terms of year-to-date performance, witnessing a 380% hike in liquid market capitalization. Bitcoin and Litecoin, given their wide-scale acceptability, have been able to build on last year’s performance. While the aforementioned information hints at growing investor sentiment, the chart shows that 2017’s top-performing altcoin, XRP, recorded a drop of 11% in the same reading.
Pointing this out to the vigilant crypto community, a Research Analyst at Messari Crypto, @fmoulin7, tweeted,
According to the Twitter user, questions over Facebook and the possible centralization of Libra are the same faced by XRP. A growing call for transparency from Facebook’s Libra has thus, bled to the XRP ecosystem as well, affecting its price in the market.
While XRP had marked its position in the cryptospace by enabling seamless cross-border payments, its recent fall can be attributed to the community’s dislike towards the involvement of banking authorities in the mix. Ripple’s many partnerships and collaborations have not translated well and borne fruit for its token, XRP.
Additionally, Facebook’s Libra can also be attributed to be behind XRP’s steady fall in valuation over the past few days, as the “XRP-killer” promises similar financial infrastructure in addition to its unparalleled user-base across the globe. While U.S. regulations threaten Libra’s future in the cryptospace, BNB and XRP’s inverse trajectory has started raising many eyebrows in the community. This leaves the crypto-community with a compelling question – Is this the beginning of a new era?
Why Ripple-powered Santander’s new UK Poland financial corridor is a game-changer
A new financial corridor is now online between the UK and Poland. It’s Santander’s, and Ripple powers it. And it seems to be the next big thing in fintech.
Banco Santander is considered to be the best bank in the world right now. And it is an official Rippler partner, client. It operates all over the world, and it’s one of the few traditional financial institutions that like to get ahead of the times by adopting new technologies instead of being conservative, fearful, and waiting, which is what most banks in the world do. Bankers hate change and innovation… until it saves them money.
That’s why Banco Santander adopted Ripple’s technology for settling international payments early. The Spanish bank released a mobile app that allows for the instant settlement of international payments in Western Europe more than a year ago. That was a massive success for Ripple’s technology and credibility, but it’s worked very well too for Santander and its customers.
Santander remains one of Ripple’s main strategic partners in the world, and it’s still developing new use cases for the technology. According to Marcus Treacher, who serves as Ripple’s Global Head of Strategic Accounts, Santander just opened a new payments corridor in the Santander OnePay FX app. It just went online, and Ripple also powers it.
It has a lot of advantages to Santander’s customers. Payments get settled in a matter of seconds for a start. Also, customers don’t pay for FX conversion (which could be because the exchange is done using XRP as a mediating currency). But it could be all about the initial promotion of the new service. We’ll have to wait and see.
It is excellent news for Ripple as well as for XRP holders. New use cases create a utility which begets demand. And demand becomes a superb market performance in the cryptocurrency market.
We are seeing how more and more economic corridors are popping up in the planet powered by blockchain technologies such as Stellar Lumens or Cardano, but mainly by Ripple’s technologies and its native cryptocurrency, XRP.
All these successes are a testament to Ripple’s focus. The company has been utterly invested in solving the global transfer problem since 2012. It’s created the technology needed and, most importantly, it’s managed to persuade the most unlikely institutions in the world to adopt (or at least test) that technology so that they can understand that cheaper, faster, more reliable international operations are better for every party involved.
The Ripple Net includes 200 banks and remittance services scattered all over the planet, and it keeps recruiting new strategic partners at the tune of one per week, on average. Most of them haven’t adopted the Californian firm’s technology at a production stage because inertia is the prevailing attitude in the world’s financial services.
Bankers are conservative, and they hate change. But as they read the writing on the wall, they will come to understand that Ripple is a much better option for them than the SWIFT system, which is 44 years old, unchanged since its inception, and still the world’s standard for settling cross-border payments.
Other members in the Ripple Network include Western Union, MoneyGram, and some of the largest banks in the Asia-Pacific zone.
Keep an eye out for Ripple. XRP usually performs very well in the cryptocurrency market, and as more news like this one keeps being announced, it will only perform even better.