Ripple's Price Analysis: XRP/USD navigates a sea of uncertainty, driven by positive fundamentals


  • XRP integration with BRD wallet and Blockset set the stage for mass adoption.
  • XRP's flash-crash on BitMEX caused losses to many traders.
  • The support at psychological $0.3000 will slow down the downside momentum.

Ripple's XRP has been one of the most volatile cryptocurrency assets out of top-20 recently. The coin hit a new high of 2020 at $0.3395 on Thursday and retreated to $0.3270 by the time of writing. Despite the retreat, the coin retains over 15% of gains on a week-on-week basis. Since the beginning of the year, XRP/USD increased by nearly 70%. Currently, Ripple's market capitalization is registered at $14 billion, while an average daily trading volume amounts to $5.8 billion.

Ripple integrated with BRD wallet and Blockset

XRP bullish momentum is not entirely speculative despite wild price gyrations. In a recent announcement, the San-Fransico-based startup revealed that XRP has been added to BRD wallet, which is considered one of the world's fastest-growing digital wallet solutions with a presence in over 170 countries. Notably, Ripple invested in BRD in October 2019 within its Xspring initiative that incubates, acquires, and provides grants to companies and projects.

In a separate development, BRD announced the launch of Blockset, a blockchain data integration platform with a set of tools that will allow developers to build applications across multiple chains. The new platform also supports XRP, which means that more developers will be able to use XRP Ledger while building their applications.

Both integrations are supposed to expand XRP adoption and improve its use cases, which is bullish for the coin.

BitMEX predicament

XRP/USD crashed below $0.15 on BitMEX, while it was trading around $0.33 on other exchanges. The coin returned to the normal price within seconds. Many BitMEX traders report that their stop-losses did not work as the price movement was too fast. However, the trading platform investigated the incident and said that the stop-loss system has been operating normally, which means that traders will not be compensated for losses incurred due to the flash crash.

BitMEX added XRP/USD Quanto swaps support only recently. 

XRP/USD: Technical picture is uncertain

XRP/USD has printed three consecutively bearish candles on a four-hour chart as the price entered a correction after a sharp growth towards $0.3400. Long wicks on intraday candles suggest that there is a great deal of uncertainty on the market. 

The local support is created by $0.3100. If it is broken, the sell-off may be extended towards psychological $0.3000. This barrier is reinforced by the middle line of 4-hour Bollinger Band, also, it stopped the sharp downside correction on Thursday. This area is likely to serve as a backstop for XRP in the short run. However, once it is out of the way, an upper boundary of the previous consolidation channel at $0.2860 will come into focus. 

On the upside, a sustainable move above $0.3300 will attract new buyers to the market and push the price towards $0.3350 ( the upper line of 1-hour Bollinger Band). The next resistance is located on the approach to $0.3400.

XRP/USD 4-hour 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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: Bart Simpson pattern implies BTC price manipulations

Bitcoin volatility jumped to November 2019 high amid a sudden price collapse during US trading hours on Wednesday. Bloomberg reports that amid the price decline, 10-days volatility surged to 65%, while the 30-days volatility in the highest since January 28 at 35.40%.

More Bitcoin News

Ethereum Price Analysis: ETH/USD creates double-top formation, risks further sell-off

Ethereum (ETH) now the second-largest digital asset with the current market value of $28.3 billion, has lost nearly 8% in recent 24 hours to trade at $256.0 at the time of writing.

More Ethereum News

LTC/USD breakdown could test $65 ahead of recovery to $100

Litecoin has been posting frequent gains ever since the price broke above the long term resistance trendline that started in June 2019. The recovery has also remained within the confines of an ascending channel.

More Litecoin News

Bitcoin Cash Price Analysis: BCH/USD desperately searches for support, breakdown to $350 looms

The cryptocurrency assets suffered another massacre on Wednesday during the American session. The mid-week recovery posted on Tuesday through to Wednesday turned out to be a bull trap.

More Litecoin News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC bulls brace for jump to $11,000

Bitcoin (BTC) has been growing for three weeks in a row. The first cryptocurrency hit $10,504 on Thursday - the highest level of 2020.

Read the weekly forecast

BTC

ETH

XRP