United States – Ripple’s XRP has enjoyed a great start this October. Last Monday, October 19, the platform received a 2.3% increase at it move towards the $0.255 level of resistance. Currently, Ripple’s XRP is the fourth-largest cryptocurrency behind Bitcoin, Ethereum, and Tether. It seems that this digital asset has risen from $0.242 to a high of $0.255, which is much closer now to bitcoin. If XRP continuously cracks this level, it can jump up to 15%.
Furthermore, the accounts that hold over one million XRP has increased in the past months. Most investors currently hold between $240,000 and $2.4 million in XRP each, which brought a significant increase and upward pressure on XRP’s price. After fairly uninspiring weeks, this digital asset has seen an excellent price rise, and investors with deep pockets believe that its price will continue to rise.
There may not be an obvious strategy behind XRP’s massive increase, but its reliability for cross-border payments surely helped. According to Ripple’s CTO, David Schwartz, any investors turn to Ripple’s XRP as a direct response to the post-pandemic inflation threats. Some people believed that the world would experience hyperinflation, forcing investors to bet on gold and digital asset safely.
Since 2019, Ripple has teamed up with many reputable banks in different parts of the world and merge their services. This company offers a premium and convenient experience to retail cryptocurrency investors, especially in the United States and the United Kingdom.
Ripple’s sudden gains have indeed brought a notable crypto asset to the industry. According to Coinmarketcap, Ripple’s XRP has seen a price rise in the last 14 days. Also, XRP stands very closely to Tether, making Ripple more committed to becoming the third most valuable crypto asset.
Consequently, wallets holding one to ten million XRP has been steadily increasing. Many institutions and companies have joined the platform, representing many percentages in a short period. Since Ripple’s XRP feature quicker and cheaper transactions, many people believe that this digital asset can be a reliable and long-term viable business model. It provides tangible services, including cross-border payments, that are essential in the world’s current situation.
Like Ethereum, XRP’s price will continuously ascend over the next months. While many whales have been loading up on this digital asset, the demand will still increase and reflect its prices. Despite some ambiguity that XRP presented last year, its market value still favours the industry.
SAN FRANCISCO, California – XRP drops significant support level because of the selling pressure of this crypto ramps up. The price drops to $0.29 from its previous high of $0.33. Now, it brawls to exceed the price level of $0.30.
XRP has been exchanging closer with Ethereum and Bitcoin in the previous weeks. This crypto uncovered it to consider selling pressure during the earlier days.
Experts note that this digital asset might be in the place to witness weakness in the near-term if the price remains under the significant support level that the bulls defended. The break under the standard appears to be a severe sign of its close-term vision. It’s suggesting that purchasers might be trailing their strength.
The position where it will stop next will probably rely on whether Bitcoin and the digital asset market can halt over the close-term resistance levels or not. These are the results of the previous price drop in the market.
A result of the previous weakness of XRP yields its place as the third-biggest digital asset by market capitalization, and USDT’s Tether beat Rippe’s XRP.
XRP is exchanging over 1%, having a current price of $0.29. It marks a distinguished drop from the previous estimate of $0.33, which was days ago.
The previous high prices accorded with the upper area of the macro exchange range of this digital asset. The rebuff signals that the level comes with selling pressure, and it might endure affecting the short-term viewpoint of XRP.
Ethereum and Bitcoin witnessed the last price drop, which had distinguished losses. It enforced these losses back to the new exchanging ranges.
An analyst stated that the price level of $0.30 was a significant support level for this digital asset to hold over. However, it didn’t retain the scale, and it seems to be a threat of witnessing its downside.
A byproduct of the previous weakness of XRP was its market capitalization, worsening to grow at USDT’s Tether’s rate. It was the fourth placer, next to Ripple.
As per Unfolded, a data aggregator, USDT, passed the market capitalization of XRP. Where Ethereum and Bitcoin trend might be, it should function as an essential role in defining the direction of XRP because a rebound from the previous lows propels in the market capitalization of XRP.
Unfolded stated that USDT’s Tether exceeded XRP, and it became the new third-highest exploited asset. The market capitalization is $13.14 billion, and it’s across all stages.
As for the XRP price, the bulls cracked the price level of $0.30 several times, yet they were unable to retain the price. Now, it’s the most vital support and resistance level for this digital asset.
XRP brawls for the price level of $0.30 in the previous month. Now, it’s at $0.20. After numerous times, it tried to maintain its price over the pivotal resistance level.
XRP was one of the feeblest digital currencies this 2020, and it endures to struggle after a market breakout. It’s exchanging volume that decreased quite suggestively even though Ripple utilizes XRP for achieving different partnerships.
The United States – Ripple’s XRP price over the United States or the US dollar extends upward, moving over the $025-resistance level. This digital asset currently consolidates gains over $0.24, readying for another upsurge. Aside from that, this digital asset overtakes USDT by market capitalization, landing on the third place. As per Anissimov, it might boost to the succeeding resistance block at $0.25.
The XPR price earned a strong momentum over the resistance levels of $0.2400 and $0.2420, which are against USD. The price exchanged at $0.2500, settling over the Simple Moving Average or SMA of 100-hourly.
In previous discussions, data displays possibilities for Ripple’s XRP to go over the resistance level of $0.2400. The XRP price earned traction over the resistance level of $0.2420 while remaining over the 100-hourly SMA.
The upward drive of the price hit the $0.2450-level, and the XRP price tested the resistance of $0.2500. Previously, the downside correction existed, ranging from the levels of $0.2450 and $0.2420.
The XRP price exchanged under the $0.2400, yet it found strong bids that are close to the $0.2380-support. The previous low on the price was near to $0.2382, and the XRP price is presently combining gains. Primary resistance is close to the level of $0.2410.
The Fib retracement level of 23.6% from the previous drop was from $0.2500 to @0.2383, and it’s close to $0.24100. The primary resistance on the advantage is nearby the price level of $0.2440 since it accords with the Fib retracement levels of 50%, from $0.2500 high to a low price of $0.2383.
It appears that there’s a significant linking strong trend, and it’s constructing with a support that’s close to $0.2380 on the XRP/USD pair’s hourly chart. If XRP/USD maintains over the trend line, it might begin a new upsurge over the $0.2440 and $0.2450.
The primary hurdle is already close to the resistance zone of $0.2500. A successful halt over the level of $0.2500 might lead the XRP price to the standards of $0.2560 and $0.2580.
The trend line support grasps the way for the price of $0.2380. The XRP price might encompass its drop to the level of $0.2320 if there’s a downside break under $0.2380.
The primary support is close to the price level of $0.2300, and the bears are probably to target a more significant correction wave to the level of $0.2200.
Another news concerning XRP is how this digital asset surpassed USDT’s Tether by market capitalization.
Konstantin Anissimov. Cex.io’s executive director reacted to the revival of XRP. The director shared possible reasons.
According to Anissimov, there’s a drop on the XRP price under the moving average or MA of 200-day. As per July 25, the data displays the on-chain volume of XRP, rising at $1.75 billion. Moreover, the considerable purchasing pressure was significant enough to let the cryptocurrency break over the 200-day MA since February.
Anissimov added that XRP might endure to upsurge to the next substantial resistance barrier, and it sits at the price of $0.25.
Ripple’s XRP token has now dropped to its lowest price point since October 17. It lost a total of 16 percent in a span of 48 hours. This is bad news, to say the least, for Ripple and the whole XRP community. It is by no means permanent and can undoubtedly have a turnaround.
What makes the drop alarming is that even though the sell-off is reflected in other major cryptocurrencies as well, others have shown immediate signs of recovery. While the decline is not unique to Ripple and its XRP, not being to recover somehow is.
Bitcoin, at one point, fell to $6,500 but achieved a reversal. On the other hand, Ethereum, at one point, refused to budge at $122 but then moved suddenly to above $125. Still, these are hardly high prices. Ripple, in particular, however, remained struggling to gain strength against the US dollar.
At present, the XRP price is trading to a new 2-year low of $0.1741. This indicated that it has already settled well below the 100-hourly simple moving average. It is presently trying to correct higher, but it is apparently struggling to gain strength above $0.2000.
Bitcoin and Ethereum’s sudden reversal, however, are optimistic signs that Ripple can eventually move up too and reach above $0.2000.
XRP’s performance is seriously worrying when one compares its market cap at present to the cap it reached in January 2018. XRP’s market cap is now down to $8 billion, but the figure was an estimated 17 times that number, at $142 billion.
Pessimistic Technical Indicators
From a technical vantage point, XRP’s current price chart already looks quite fragile. Several key support levels have been taken out to the downside, which means that the chart looks extremely alarming and worrying. At the very least, XRP now has to rally back and reach the $0.21 level. This level has become a stern point of resistance.
If a break above the 22 EMA on the daily chart could be achieved, this would be a great relief. It can help rally XRP to the upside.
Worse, the next level of support to the downside for XRP is now at $0.16 and $0.14, respectively. A break-even below those levels could push price levels to those posted in early 2017. The levels could fall down to $0.08, $0.06, and even down to $0.02.
The movement of XRP in a span of five months, which is shown on Coinbase, exhibited a moderate level of volatility. The most recent fall triggered the coin to lose critical supports. However, the 200-day MA has not changed all that time, while the XRP price has been falling.
Previously, there was a sense of optimism that an upward trend would finally take place in mid of October. This did not happen as the bears hit the price of XRP.
As XRP’s price continues to fall, while Tether’s market cap continues to go up, Ripple’s token could soon lose its third place among all the cryptocurrencies. It’s a position it has been enjoying for a while now, a sign of how well it has been performing until this year.
Over the year, apart from the continuous price decline, many criticisms have been made against its perceived status as a potential security. Several criticisms have also been made over the ongoing OTC token sales taking place every month.
What makes all these declines worse is the inability of the coin to gain support from the short-term as well as long-term MAs.
XRP to Face Three Issues in 2020
Because of all these price drops, the prospects for XRP prices in 2020 are quite dim. Analysts and traders have highlighted three specific problems. The greatest one is the continued dumping of the token.
Whenever those events take place, media attention is always in a flurry, which can further trigger more dumping. According to analysts, with the co-founder Jed McCaleb constantly offloading onto the market, XRP holders are always vulnerable to the activities of the large bag holders. This is even more apparent for those in the XRP community compared to other cryptocurrency holders.
What makes continuous dumping such an issue is because there are too many XRP tokens in circulation. This can lead it to hemorrhage value with constant giveaways and oversupply.
Ripple is also set to release over 200 more monthly tranches of over 220 million XRP tokens. Given how these coins are now being perceived, until a sudden recovery takes place, these millions of tokens are waiting to be dumped as well.
The second issue is the continuous price depression of XRP. The confidence of the investors is waning, and this can further push the price down. For signs of bullish support to materialize right now will take a miracle, according to some analysts. Other analysts who are more optimistic about Ripple despite the present environment said that the company has to move fast and corner the market over the next 12 months, or all is lost.
The third most significant issue for XRP in 2020 is the increased and intensifying competition from CBDCS. Despite the downward trend of late in the cryptocurrencies market, 2020 is already lining up to be the year where different sovereign digital currencies and bank-issued stablecoins will clash for supremacy. Competition is especially hitting up from China. Other countries are also looking to have their digital currencies soon.
With corporations such as Facebook and big banks such as JPMorgan all trying to join the fray well with their digital currencies, Ripple had to fight hard to stay relevant among the cross-border payment solutions in 2020.
Given all these increased competitors, Ripple might find itself displaced from the third position quickly enough, even if it recovers its prices.