Ripple has seen a small 0.31% price increase over the past 24 hours of trading. The cryptocurrency is currently trading at $0.3382 per token after seeing a relatively muted 2.02% price drop over the past 7 trading days.
Ripple has been under a lot of pressure in the past few months with regards to if XRP is a security or not. The CEO of XRP had recently stated on a podcast that he does not think that XRP or even BTC will be used to buy coffee in Starbucks any time soon, believing that fiat is still the number 1 payment preference for these types of transactions. This highlights the vision of Ripple as a company in the sense that they wish to make cross-border payments much more efficient for the likes of financial institutions.
Ripple is still ranked in 3rd position in terms of overall market cap across the entire industry. It has a total market cap value of $13.41 billion after the 61 month old coin experienced a 50% drop over the last 90 trading days.
Let us continue to analyse price action over the recent period for XRP.
XRP/USD – SHORT TERM – DAILY CHART
Analysing the market from the short term perspective above, we can see that XRP is still trading within a tight narrow range over the past three weeks. The range consists of an upper boundary marked by a downside 1.414 Fibonacci Extension level (drawn in blue) priced at $0.3596 and a lower boundary at a short term downside 1.414 Fibonacci Extension level (drawn in red) priced at $0.3063.
The fact that price action has remained within this narrow range for so long in a bearish market could suggest that the majority of the bearish period may be over.
IF the bulls manage to push price action above the upper boundary priced at $0.35 we expect immediate resistance to be located at the long term .886 Fibonacci Retracement level priced at $0.4022 followed by the downside 1.272 Fibonacci Extension level (drawn in blue) priced at $0.4242.
If the bullish momentum can continue even higher than we expect further resistance to be located at the 100 day moving average which is currently hovering at the $0.45 handle. This resistance level will require significant momentum to overcome as price action hasn’t managed to break above this moving average for over 4 months.
Alternatively, if the bears manage to regain control within the market and push price action below support identified at the lower boundary of the range, at $.30, then we expect immediate support to be located at the downside 1.618 FIbonacci Extension level (drawn in blue) priced at $0.2669.
The technical indicators within the market are trading ever so slightly toward the bulls favour. The RSI is indeed to trading above the 50 line, but only marginally and has not been able to remain above 55 for very long. IF the RSI can make a sustained break above the 50 handle then we can expect the bulls to make further gains within the market.
Let us continue to analyse price action a little closer over the shorter period.
XRP/USD – SHORT TERM – 4HR CHART
Analysing the market from the benefit of a closer time frame, we can see that the recent bullish momentum has taken price action from a low of $0.244 to a high of $0.377.
Since placing this high price action has rolled over slightly to find support at the short term .5 Fibonacci Retracement level priced at $0.31. The market has since rebounded to trade where it is currently priced at $0.33.
We can also see that over the past few days the market has began to form a symmetrical triangle pattern. If price action can break above the upper boundary of the triangle we can expect the market to make further gains. In this scenario, if price action can continue above $0.37 then we can expect our initial targets to be located at the 1.272 Fibonacci Extension priced at $0.41 followed by the 1.414 Fibonacci Extension priced at $0.43.
Alternatively, if the bears push the market below the lower boundary of the symmetrical triangle we expect immediate support to be located at the .382 Fibonacci Retracement level priced at $0.36. Further support located below this level can then be located at the .5 and .618 Fibonacci Retracement levels priced at $0.31 and $0.29 respectively.