• XRP price stalls at the psychologically important $2.  
  • Coinshares launches XRP exchange-traded product.
  • Securities and Exchange Commission (SEC) war on Ripple losing basis.

XRP has climbed over 360% over the last five weeks, from the low to its high, and is on pace to close with the second-best month since inception with a current gain of 200%, and it is up over 700% from the lowest price level this year. With all the euphoria that has followed the price action and the underlying deterioration in the SEC case against Ripple, it is easy to overlook the charts. Still, they are arguing for at least a short-term consolidation.

XRP price supported by multiple large transfers of the coin

Coinshares, a digital investment firm, announced yesterday that it would launch an exchange-traded product (ETP) following the performance of XRP. The new product will be listed on the government-regulated SIX Swiss Exchange and will be physically backed as each unit will be worth 40 tokens at the beginning. The ETP will carry a total expense ratio of 1.50%, and the base currency will be the USD.

It is a bullish statement by Coinshares considering the lingering legal battle with the SEC. This once again shows that Ripple resonates with companies and investors outside of the United States. Townsend Lansing, head of ETPs at CoinShares, concurs when he remarked, “once we determine that a professional-caliber product is feasible, and it appears that demand exits to make a liquid market for trading the product, we bring the product to fruition.”

At today’s high, Ripple’s daily chart is showing that the Relative Strength Index (RSI) did not confirm price, creating a mild bearish momentum divergence. On a weekly basis, the RSI is near the reading registered at the November 2020 highs.

If the weakness today evolves into a consolidation or even a correction, it should garner heavy support at the 38.2% retracement of the rally beginning on April 1 at $1.42. Weakness below that level would dampen the bullish outlook and delay a successful break of $2 into May or later.

XRP/USD 12-hour chart

XRP/USD 12-hour chart

As noted, $2 will be an obstacle just like $1, but with the 61.8% retracement in close vicinity at $2.08, it may prove more challenging. The next upside target is the 78.6% retracement at $2.62.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price sees traders balancing on the sharp end of the blade

Bitcoin price sees traders balancing on the sharp end of the blade

Bitcoin price action is slowly but surely trying to move north on price charts as traders try to continue and hold on to the momentum that started on Monday morning.

More Bitcoin News

Litecoin Price Prediction: LTC stalls at a crucial threshold

Litecoin Price Prediction: LTC stalls at a crucial threshold

Litecoin price is trying to find its footing after lifting from support reinforced at $50.50 and topping out at $55.72. This northbound move would have pushed the token out of a narrow-ranging channel. 

More Litecoin News

Dogecoin price and on-chain metrics forecast 35% rally for DOGE

Dogecoin price and on-chain metrics forecast 35% rally for DOGE

Dogecoin price has been stuck trading between two barriers since August 28. The recent attempt to push through the upper limit indicates that DOGE buyers are ready to push it higher. 

More Dogecoin News

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price consolidates, forecasting a 22% rally for CRO holders

Crypto.com price seems to have undone its breakout gains seen in the last week of September. This downtrend has morphed into a tight consolidation showing no volatility.

More Crypto.com News

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP