Ripple has seen another +14.88% price increase. at the time of writing, over the past 24 hour trading period. The XRP cryptocurrency is exchanging hands at a price of $0.3722 bringing the total 7-day price increase to +33.34%.
What’s been going on?
Ripple has been generating a wave of headlines from allowing users to tip on YouTube and Twitch to establishing another top tier banking partnership with PNC Bank.
Why is the partnership important?
PNC Bank is considered to be a top 10 ranked bank in the United States. This makes it a very high profile partnership. The bank will make use of Ripples xCurrent which allows the bank to make cheaper and faster payments to anyone in the world.
Find out more about the partnership in our latest news article.
Where is Ripple currently ranked?
Ripple still continues to hold the number 3 ranked position in terms of overall market cap value across the entire industry. It has a total market cap value of $14.82 after the 62-month-old coin suffers a -25% price decline over the past 90 trading days. Ripple is currently still trading at a price that is 89% lower than its all time high trading price.
Let us continue to analyse price action for XRP over the short term and update our expected support and resistance level.
XRP/USD – SHORT TERM – DAILY CHART
How has price action been over the past few weeks?
Analysing the market from the short term perspective above, we can see that the Ripple market has held at our expected support level above $0.25. The market dipped in August to find support at a downside 1.618 Fibonacci Extension level (drawn in blue) priced at $0.2669. This level provided ample support as the market went on to rebound from this level.
After meeting resistance at the downside 1.414 Fibonacci Extension level (drawn in blue) priced at $0.3596 the market rolled over and fell. We can see that it found support at the downside 1.618 Fibonacci Extension level priced at $0.26 during September 2018.
Where are we now?
We can see that price action has once again rebounded at the support found at the $0.26 handle. It has rebounded aggressively, forming a double bottom formation within the XRP/USD market.
Price action continued to rise over the past few trading sessions until meeting resistance recently at the $0.3789 handle. Today’s candle has not yet closed so there is no telling if price action will continue to break above this resistance handle. With the momentum that it has recently established it would not be a surprise to see the candle close higher than the resistance at $0.3789.
Where can we go from here?
If the bullish momentum does continue to push price action up above the resistance at $0.3789, then immediate significant resistance expected higher can be located at the long term .886 Fibonacci Retracement level priced at $0.40. We can see that this area of resistance is further bolstered by the 100 day moving average which is currently hovering close within its vicinity. Price action will require significant momentum to overcome this level.
If price action can continue further higher then more resistance is expected at the previous downside 1.272 Fibonacci Extension level (drawn in blue) priced at $0.42. Analysing from a longer timescale, further significant resistance can then be expected at the psychological round number handles of $0.50 and $0.60.
What if the bears regain control?
Alternatively, if the bears regain control within the market and push price action lower, we expect immediate support below to be located at the short term downside 1.272 Fibonacci Extension level (drawn in red) priced at $0.3382 followed by the short term 1.414 Fibonacci Extension level (drawn in red) priced at $0.2969.
If the bears can push the Ripple market further lower, then more support below can be located at the downside 1.618 Fibonacci Extension level (drawn in blue) priced at $0.2669.
What are the technical indicators reading?
The technical indicators within the market are heavily leaning toward the favour of the bulls at this moment in time. The RSI is currently trading well above the 50 handle at overbought conditions. If the RSI continues to remain above the 50 handle we can expect the market to continue to make further gains. However, as the RSI is extremely overbought, we expect a small pullback soon allowing the RSI to return to the 50 handle before another bullish run.