Aug 8, 2020 13:31 UTC
Aug 8, 2020 at 13:35 UTC
Cryptocurrency Price Analysis: Ripple
Ripple, commonly referred as “XRP” holds the third spot in the crypto market by market capitalization and volume in trade. Introduced in 2012 the asset is said to be amongst the oldest cryptocurrency along with the leading Bitcoin. Unlike other cryptocurrency working on blockchain technology, XRP is established on Consensus Mechanism. Majorly known for it’s digital payment network and protocol the asset has drawn attention of many banks and financial intermediaries.
The asset is said to be more feasible and compatible owing to it’s low transaction cost and high speed. Statistics shows that XRP is leading the race in transactions per day by pushing an average of 80,000 to 90,000 (closing to 2 million) transactions per day whereas bitcoin working at only 30,000 transactions daily.
Many experts believe that the coin is still in it’s “proving phase” and shall be avoided, while few believe that the coin has the potential to lead the digital currency era.
According to the reports, the asset has made a massive 1760% increase in the sales from the past quarter. Over the past week, XRP returned to $0.3 with the explosion of the crypto market. Reaching a $0.32 high, but is yet to cross the $0.35 high of this year. The asset cross it’s $0.3 resistance this month,setting new resistance at $0.32 and major resistance of $0.35 with initial support at $0.3.
SHORT TERM PRICE ANALYSIS: XRP/USD
Examining from the technical levels, The Relative Strength Index (RSI) measuring the extent of latest price changes (Check: Source link.) specify an Overbought Market condition initially at a top 88% beginning from this month to gradually declining to 81% as of today. The asset was trading at a $0.2985 high on 1st Aug with a huge 12.04% gap between the closing price from the previous day. Usually, this indicates that the asset is up for a correction in the coming days which was evident when the market closed at a bearish $0.2881 the next day. From the chart, it can be clearly seen that the asset is struggling to keep up the bullish uptrend and can be said that is up for a reversal indicating that bulls might lose the grip in the coming days.
Moreover, by the time of writing the asset hit a $0.2976 low below it’s $0.3 support further suggesting a pullback till the RSI settles.
(Source: Source link.)
On the contrary, the existence of a wide divergence between the fast moving EMA (check: Source link.)
and Price indicates a constant bullish trend for a short period of time.
Furthermore, the recent crossing of the short moving average (EMA 26, SMA 26) above the Longer (EMA 50) further proves a strong buying superiority i.e the bulls might have the uptrend for the coming days.
Moving Forward, On Balance Volume another Momentum Indicator responsible for measuring buying and selling pressure based on the volume of the trade suggests an uptrend market flow. (Check: Source link.)
It can be noted that, OBV is following the footsteps of the increasing prices i.e with the rise in price we are looking at an increase in buying pressure for the same. This shows a sign of strength for the bulls.
The short-term profit motive bears took the advantage of the sudden rise in prices past week shrinking off the bullish trend and hence the OBV, however, the momentum was once again regained by the bulls pushing the price further up.
Incorporating the above, it can be said that the asset will continue a bullish uptrend if the price settles above the $0.3 initial support or/between $0.31 resistance. If the situation continues, the asset might break it’s $0.32 resistance.
However, we might see a short bearish trend if the price closes below $0.3 or/between $0.28 key support. The bearish trend might continue till the RSI is settled from the overbought position and can be said that a bullish trend might follow.
Below that a bearish trend is likely to follow.
Key Resistance Level: $0.31, $0.32 (highlighted by blue)
Key Support Level: $0.3, $0.28, $0.26 (highlighted by red)
For more short-term reference: