Fundamentally, XRP prices should to be skyrocketing and there are hints of that because on a weekly basis, XRP is up 26 percent. However, when we take a closer look in the daily chart, it appears as if sellers are still in charge rebuffing bullish attempts above 35 cents and even 40 cents, our main resistance line. In any case, news of Ripple product merger would go a long way in boosting prices especially now that testing of xRapid has been a success,
From the News
Three high liquid and community trusted exchanges Bittrex of the US, Bitso of Mexico and Coins.ph of the Philippines are joining hands building a working ecosystem around xRapid where XRP, an on demand liquidity tool will used to facilitate cross border payment across the three countries. By incorporating XRP, transacting companies will enjoy seamless movement of capital from one jurisdiction to another via the RTXP protocol without sacrificing security and speed. Besides, there will be low liquidity costs thanks to the use of XRP which would instantaneously convert fiat from one denomination to another in a cheap manner.
Coincidentally, this comes at the time when the company announced the completion of xRapid testing and ready for mass roll out. The solution is one of Ripple’s products that make use of XRP and should companies begin adopting, then XRP would have a direct boost.
As previously highlighted, Bittrex account holders can now trade the XRP/USD market. Despite this being an exciting XRP liquidity boosting announcement, select international account holders and those from supported US states can choose to trade from the two USD markets on offer. Most would be barred from trading but should Binance, another major cryptocurrency exchange the XRP community is lobbying to make XRP as base, the price of XRP might be positively affected.
In this time frame, the trend is clear despite the 26 percent week over week gain.
As visible from the chart, week ending Aug 12 break out bear candlestick continues to define and confine recent price action. As mentioned in previous XRP technical analysis, buying and trading against the trend is counter intuitive that is regardless of last week’s small range bullish candlestick rejecting lower lows.
Clearly, for buyers to be in charge then buyers must build up enough momentum and clear 40 cents, our immediate resistance line and sell trigger. If not and sellers drive prices lower this week, then we suggest selling on pull backs in lower time frames with first targets at 15 cents.
By dropping two percent in the last day, XRP sellers are yet to reverse Aug 17 high lows meaning our last XRP trade plan is valid since that bullish engulfing and Morning Star reversal pattern is not yet confirmed.
Going by our last trade plan, all we need is prices to edge past 35 cents and even retest-or break above—our immediate resistance line at 40 cents.
Should that fail to happen and sellers drive prices below 25 cents, the tip of Aug 14 doji candlestick, then we recommend selling on every with first targets at 15 cents and stops at 30 cents.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
Trading image via Shutterstock.