Ripple's XRP, the third-largest digital asset with the current market value of $9.4 billion has lost over 5% in recent 24 hours and hit the low of $0.2136 on Friday. XRP/USD is moving within a clear bearish trend amid expanding volatility.
Ripple may go to IPO
Speaking at the World Economic Forum in Davos, Ripple's CEO Brad Garlinghouse said that initial public offering (IPO) is a natural evolution of any company.
“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.”
Thus he said that in the coming years we would see an IPO boom in cryptocurrency and blockchain industry. He even hinted that Ripple might also launch an IPO. Some community members believe that this is a positive signal for Ripple as it will attract institutional investors to the project.
XRP/USD: technical picture
XRP/USD is trading at $0.2158 with the nearest support created by a psychological $0.2100. This area is reinforced by SMA50 daily. Once it is taken out, the sell-off may be extended towards$0.2000 and an ultimate bearish goal created by the lower line of the daily Bollinger Band at $0.1960.
On the upside, the initial bull's target is seen at $0.2200. This level limited the decline during the previous week; however, currently, it serves as resistance are. We will need to see a sustainable move above this handle for the upside to gain traction. The next important area comes at $0.2300. Once it is out of the way, we may see an extended recovery towards SMA100 daily at $0.2380.
XRP/USD daily chart
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.