XRP Is Consolidating: Should You Invest in Ripple?
XRP is the native coin of the Ripple. It is operated on a distributed ledger to facilitate fast and secure payments. The process is quick but complex. First, it shares the information to a public database; if the node validates the data, the server reports the match. Only then is the transaction authorized.
With XRP, the Ripple network aims to achieve the fastest transaction. If one compares it with BTC and ETH, then Bitcoin takes ten minutes to one hour to create a block, Ethereum takes more than 15 seconds, while XRP takes only 4 seconds and a lower network fee to complete the process.
However, it is based on blockchain, and no central authority decides the set up of nodes and transaction confirmations. The best part is, it allows other cryptocurrencies and commodities to transfer on the network.
More than 47 billion XRP tokens are in circulation, and it has a maximum supply of 100 billion. It is now among the top 10 cryptocurrencies with a $40 billion market capitalization.
The price of XRP is down because of regulatory issues with the US SEC. A lawsuit was charged for Ripple being unregistered security in 2020. Investors are waiting for a massive flip in the price after the announcement from the court regarding this.
Now let’s get more information and look at the price chart of Ripple (XRP)!
At the time of writing this article, the price is $0.26, and it is consolidating at the support level. Since June, it has not shown any bullish momentum, and it is moving sideways in the range of $0.25 to $0.40.
On the daily chart, MACD may create a bullish crossover soon, but it does not mean the price will rise. The RSI is around 35, which is in the oversold zone. Bollinger Band reflects less volatility which is good, but the candlesticks are in the lower half, which again signals bearishness. The Moving Average is also going downward following the trend.
Most technical tools reflect bearish signals, so it is not the best time to invest.
As it consolidates in this range, a target of $0.40, with $0.20 as a stop loss, may help investors. It is a good chart for swing trading. However, if you are a long-term investor, then you should wait for a breakout.
All the crypto markets and stocks are down. Investors may wait for a couple of weeks (if not months) to find momentum in the crypto market.