Ripple (XRP/USD) Price Analysis: Breakout Direction—Above 40 cents or Below 30 Cents– Will Define Short to Medium Term Trajectory of XRP
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Look at it this way: 2018 has been bearish and some assets are down >95 percent from 2017 peaks. Regardless, base activity is on the rise. Of course, compared to early last year, mentions of XRP, Bitcoin and even crypto was minimal only exploding late last year thanks to the precipitous rise propelling XRP and Bitcoin to the limelight.
Despite plummeting prices, coin issuers are registering new milestones. At Ripple, Cory Johnson—a former journalist with Bloomberg and the Chief Marketing Strategist– said members of the firm were in constant communication with the White House fanning speculations that the US SEC might after all end up classifying XRP as a utility.
Aside from the speed and cost effectiveness that Ripple solutions present, Brad Garlinghouse and others have been put to task from critics who are convinced that the network is centralized and that the network can work in isolation without XRP.
Nonetheless, Ripple is weathering this criticism and with a well-executed decentralization demand, Ripple now has relinquished control of the Unique Node List to third parties and now owns 47 percent of all Validators.
Ripple runs 47% of the validators on their recommended Unique Node List. The UNL is only 21 validators long. There are over 100 validators operating
Perhaps this–and the strides they are making, bringing in more partners and getting the nod from institutions—as XRP Report for Q3 shows a significant jump in XRP sales from $16 million to around $98 million— and widespread use in ASEAN economies could fuel the next wave of XRP bulls.
XRP/USD Price Analysis
Even with bears threatening to drive prices below important support levels, XRP/USD is technically bullish as long as prices are trading above the accumulation of the last week of November. At spot, XRP is down two percent in the last day but with price stagnation, our previous forecast is valid. We expect XRP/USD to expand above minor resistance level and perhaps retest 60 cents by end year.
Trend: Flat, Bullish
From a top-down approach, XRP is bullish but the recent draw down has seen prices retreat from Sep highs stalling at around 35 cents to 40 cents main support zone. Unless otherwise there are strong breaks below this descending support as bears aim for Sep lows and later 15 cents.
Volumes: Decreasing, Bullish
Clearly, XRP/USD is trending within an accumulation. Still, in the midst of this we expect buyers to stay on top and even break above 40 cents triggering bulls. At the moment, prices are oscillating inside Nov 25 high low. It’s a bull pin bar printing in the midst strong bear momentum. With above average volumes—188 million versus averages of 92 million and bullish, we expect volumes to sync in and edge higher. However, if there are drops below 30 cents or Nov lows, then the break out bar must register above-average bear volumes exceeding 70 million.
When we filter out the noise, XRP/USD price action is trading within a bull breakout pattern and with floors at the 30 cents, the base acts as a main support for a bull flag. Currently, the tight 7 cents accumulation within Nov 25 high low mean prices are ranging. Therefore, the breakout direction is important going for the short to medium term trend of XRP.
Still, none of our trade conditions mentioned in our last XRP/USD price analysis are live. But we are positive of XRP testing 60 cents by end year more so if there are clean breaks above 40 cents—our minor buy trigger line.
All charts courtesy of Trading View.
This is not Investment Advice. Do your own Research.