Ripple (XRP) has seen a technical bounce off the oversold with a 12% surge at time of writing. This successful turn of events has led XRP to be the #2 largest cryptocurrency by market cap...AGAIN.
Is this just a technical short term bounce or is there some larger at play here fundamentally?
Let's see what the chart says:
-First you can see XRP has been trading inside a pattern since Sept 20th marking Lower Highs with support located at .28 confirmed with two touches.
-We can see the 50 Day (Orange ) is resting flat at (.335) and has been acting as a resistance since Nov 20th. If XRP can scale above this that would be a indicator. But the work isn't over there. For a bull trend to be full intact and a bottom confirmed we need to see XRP scale above it's 200 Day which is located .389.
-Below 28 cents and the crypto looks extremely . XRP is one of those tokens that pumped from April 2017 (around 2 cents exploding to 40 cents trading sideways for a few months and then jumped to $3.30 at the height in Jan 2018).
-Trying to locate solid supports for XRP is difficult because of it's short history coupled with the orders of magnitude price pump it experienced.
-XRP bounced off the oversold
-Stochastic also confirmed buy signal
Bulls: Aggressive buy order can be placed if XRP scales above it's 50 day . Stop Loss entry should be entered at .25. Make sure to adjust trade allocation size so that no more than 2% capital loss would incur if your stop get's triggered.
Bears: Short entry can be executed just below the Bulls stop loss. This trade will need to be hand held because we don't really know what historical supports can be counted on in case Bitcoin were to capitulate.
- High profile hire announced today to Ripples General Counsel team
-Swift is apparently launching a test among 110 out of 11,000 banking relationships to test R3 (Corda) DLT for cross boarder remittence business. This opens the bridge to Ripples DLT and XRP to be leveraged as XRP will act as the primary settlement transaction for these cross boarder remittences. This is still very early news and details will be forthcoming.
Food for thought:
-Could Ripple and XRP end this crypto winter with real adoption from the global banking network?
-Will XRP surpass Bitcoin in the future?
-Will XRP be the first crypto to decouple from Bitcoin?
One things is for certain, there is never a dull moment in this market.
Trade safe. Be well,