Ripple was developed as a method to assist the RTGS transactions, currency exchanges, and other forms of transactions that took a longer processing time. The ripple network transactions are authenticated using the XRP tokens, which are considered a cryptocurrency. Being in the market since 2012, it has a market capitalization of $48 billion.
While the banking fraternity has widely accepted Ripple’s technologies, they have maintained a distance from the more volatile XRP crypto. It was the first conceived cryptocurrency by Jed McCaleb and has been considered an asset with huge potential.
XRP: Technical Analysis
As seen through the 1-day chart of XRP tokens, it has maintained a steady valuation above its 200 days moving average, which indicates foundation strength in the coin. Even the sudden price surge is supported by a near-term moving average of 50 DMA. Hence it is safe to presume that if XRP crosses the 50 DMA, which is within reach of this cryptocurrency, we can witness a strong uptrend towards the recent highs of $1.5.
For XRP to sustain above the historical barrier of $2, it will have to cross the resistance near the $1.5 range with substantial volume. Recent clearance provided by the SEC offers a great opportunity for investors of XRP to enjoy a good profit.
Apart from these factors, the MACD is indicating a golden crossover. However, investing before the crossover happens can be risky as these trends can change with even a few hours of sell-off trades. Investors should therefore wait before making a buy position.
XRP is currently trading in a tight zone and favors the recipe for a perfect uptrend. It has taken support from $0.80 and moved 40% up towards $1.1 before encountering some profit booking. While it substantially broke through the short-term resistance line, an uptrend is unlikely to happen without testing the resistance zones of $1.
Not only is this level a psychological hurdle, but $1 also has a long profit booking history. As long as the current momentum is maintained above $1, there can be a huge uptrend in the short term, close to the $1.5 levels as per our XRP predictions.
XRP will be in the uncharted territory above the $1.1 zones, and the only resistance gives a huge leeway for a decent profit run. A further bull run is possible only if this short-term trade scenario is combined with the golden crossover possible in the MACD indicator. For traders, the price action seems justified as long as it maintains the trading zone visible on the charts.
Short trading ranges also support our theory of a resistance/ profit booking zone around $1.1. Hence traders should not make a buy position until XRP crosses $1.1. In the short term, there is an opening for a selling opportunity for a quick buck. However, that’s an area reserved for scalping traders. Have patience and wait for a breakout above $1.1 or wait to purchase near the support levels of $0.8.