Ripple has continued its decline over the past 24 hours, dropping another 2.66%. The cryptocurrency is currently trading at $0.33 after suffering a precipitous decline totalling 23% over the past 7 trading days.
What is Ripple?
Ripple has been described as a cryptocurrency enterprise solution that offers banks and payment providers a reliable, on-demand option to source liquidity for cross-border payments. It was founded by Ripple Labs in 2012 and specialises in numerous tools and applications for banks and financial institutions to make their processes much more efficient.
What makes Ripple unique?
Ripple can boast of being one of the fastest cryptocurrencies around as it can process payments within 4 seconds. It can also boast superior transactions per second (TPS) speeds as it can handle 1500 TPS on a consistent basis. This far outshines the 25 TPS that Ethereum can handle and the 7 TPS that Bitcoin can currently handle.
This week, the altcoin cryptocurrency exchange, BitTrex, has announced that it will be adding the XRP/USD trading pair to its exchange, further increasing the access for users to purchase Ripple.
Where is Ripple ranked?
The 60-month-old coin, Ripple, is currently ranked in 3rd position in terms of overall market cap across the entire industry. It has a total market cap value of $13.18 billion and has some significant losses to regain as it has lost 51% in value over the past 90 trading days.
Let us continue to analyse price action for Ripple over the long term.
XRP/USD – LONG TERM – DAILY CHART
The great bull run
Analysing the market from the long term perspective above, we can see that Ripple had experienced a bull run toward the end of 2018. The bull run started from a low of $0.1581 on December 7 2017 and extended to an all time high of $3.53 on January 4 2018. This was a price increase totalling 20,000% from low to high.
What happened after?
We can see that after the market placed the all time high (ATH), price action proceeded to roll over. It had initially found support at the .786 Fibonacci Retracement level priced at $0.87 in January 2018. This Fibonacci Retracement is measured from the entire bullish run aforementioned.
The market was not, however, able to sustain itself and proceeded to fall further lower throughout February until support was found at the .886 Fibonacci Retracement priced at $0.54, during March. We can see that, after slightly dipping in April, the market managed to sustain itself above the $0.54 level for a few months until price action collapsed below it in June and July.
Let us continue to analyse price action a little closer over the short term to highlight any potential support and resistance zones.
XRP/USD – SHORT TERM – DAILY CHART
Analysing the market from a shorter time frame, we can see that XRP had experienced another, smaller, bullish run during April 2018. Here price action started from a low of $0.45 and continued to a high of $0.84. This was a 120% price increase from high to low.
We can see that the market was depreciating after the bullish run and continued to fall during May and June. We can see that support was found at a downside 1.272 Fibonacci Extension level priced at $0.43. The market was able to sustain itself at this support relatively well during July, however, as August began to trade it collapsed further lower.
Where are we now?
We can see that price action has recently found support at a short term downside 1.272 Fibonacci Extension level (drawn in orange) priced at $0.33. This level has provided a decent level of support over the past 3 trading days.
Where can we go from here?
If the bearish pressure persists within the market, which we should presume will happen, we expect the market to fall further lower until it finds support at the short term downside 1.414 Fibonacci Extension level (drawn in orange) priced at $0.29. We can see that this level of support is significantly bolstered by a downside 1.618 Fibonacci Extension level, priced in the same area, as well as it being the price highs witnessed during October 2017. Support located below this level is expected at the downside short term 1.618 Fibonacci Extension level (drawn in blue) priced at $0.23.
What if the bulls can regain control?
Alternatively, if the bulls can gather some momentum from this support zone, we expect immediate resistance to be located at the downside 1.414 Fibonacci Extension (drawn in black) priced at $0.37. Further resistance above this area is located at the downside 1.272 Fibonacci Extension level priced at $0.43. Both of these Fibonacci levels are previous support levels expected to turn into new resistance levels.
What are the technical indicators reading?
The technical indicators within the market are currently heavily favouring the bears at this moment in time. The RSI indicator is currently trading at extreme oversold conditions around the 25 handle indicating the prevailing bearish momentum. For a sign that the bearish momentum is fading, we will look for the RSI to approach the 50 handle once again.
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