Sheldon McIntyre, CMT
Independent Analyst
- 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
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.
Recommended Content
Editors’ Picks
Shiba Inu price stagnancy brings investors’ losses to a 28-month high
Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.
LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier
Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.
THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range
THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27. RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.
Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability
Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.