Ripple price analysis: XRP/USD tumbles down, as expert raise some red flags about the coin
|XRP/USD continue the retreat from recent highs.
Castella from Elvis Investment is sceptical about XRP's future.
XRP/USD is trading at $0.4686 to press time, down 1.7% on a daily basis and 1.5% since the beginning of Friday. Ripple is under selling pressure as the upside momentum faded away and no new supportive news came in to support the rally. XRP's market value is registered at $18.4 with the average daily trading volume $293M.
Ripple's coin known as XRP is often criticised for being too centralized. Elvis Investment CEO, Anatoly Castella believes that the centralized protocol to the protocol can affect the token's performance both now and in the long run. Speaking to Express.co.uk, he explained that Ripple can miss out big changes on the cryptocurrency market, triggered by the increased inflow if institutional money to the industry.
“Ripple resembles a fintech platform combining the best elements of fiat money and blockchain cryptocurrency," he said. “It should be considered 'Digital Fiat', not a cryptocurrency.”
Castella outlined the fundamental differences between XRP and other coins, citing the way the coin was created as the biggest concern.
“Ripple cannot be compared to BTC or ETH. When bitcoin was originally created, it was designed to be a store of value. When you created a transaction, you were sending a store of value to another account - for payment for goods and services.
Ripple's technical picture
From the technical point of view, XRP/USD broke below 100-SMA (1-hour chart) and proceeded to $0.4640, where some fresh buying interest appeared. If it is cleared, the downside momentum will gain pace and push XRP towards $0,4600, which is 200-SMA (1-hour chart). On the upside, the coin needs to climb above $0.4960 to proceed to critical $0.5000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.