Where Ripple stands in crypto market

Introduction

Universe of Crypto market is humongous. Ripple happens to be the part of this prestigious group. It is also famously known as “XRP” and occupies the third spot in the crypto market as a result of its market utilization and trade volume. After making its debut in 2012, the asset happens to be the oldest cryptocurrency together with the popular Bitcoin. Dissimilar to the cryptocurrency based on blockchain technology, XRP works on Consensus Mechanism. Famous for its online payment facility and protocol, Ripple has enchanted many banks and financial institutions through its unique features.

XRP has made giant strides?

The XRP has become a viable option due to the frugal transaction cost and electrifying pace. Statistics prove that XRP is at the forefront of daily transactions as it performs transactions worth 80,000 to 90,000 (closing to 2 million) on a daily basis. This is higher than that of bitcoin, which does 30,000 daily.However, experts say the coin still has not proved its worth yet and is highly avoidable and there are some who think that it can easily reach the pinnacle of digital currency. Going by certain reports, the Ripple has made heavy inroads into the market recently by clocking 1760% increase in sales compared to the last quarter. In the week gone by, XRP came back to $0.3 due to the dull phase prevailing in the crypto market. It has touched the height of $0.32, but has not gone past the $0.35 mark clocked this year.

Short-term price review: XRP/USD

Reviewing from the technical front, The Relative Strength Index (RSI) gauging the level of latest price changes (Check: Source link.) sees he prospect of an Overbought Market condition, which initially was at a peak of 88% starting from this month, and then slowly and steadily tumbling to 81% as of today. The XRP was trading very high at  $0.2985 on 1st Aug, having a humongous 12.04% gap from the closing price of the previous day. Generally, this means that the XRP will go for a correction in the days to come, as it was obvious when the market stopped at a bearish $0.2881 the next day.

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The chart given above indicates that the asset is grappling to keep pace with the bullish uptick and a reversal is very much on the cards when bulls might fail to hold in the coming days. In fact, at the time of writing this article, the asset touched the low of $0.2976 much lower than it’s $0.3 support, implying a pullback till the RSI stabilizes. Instead, the wide gap between the fast moving EMA and Price suggests a bullish tendency for a shorter period. Also, the movement of the short moving average (EMA 26, SMA 26) above the Longer (EMA 50) again indicates a buying dominance, implying that the bulls might go up in the coming days. Going forward, On Balance Volume another Momentum Indicator predicts an upward market trajectory. (Check: Source link.) It should be observed that OBV is following the path of inflation i.e as price goes up we can see an uptick in buying pressure for the same. This is reflective of the strength of the bulls. The small-duration profit-motive bears cashed in on the unexpected price rise past week, thinning the bullish trend and subsequently the OBV, but the bulls pulled back the momentum again and sent the price higher.

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After scrutinizing the above illustration, it goes without saying that the asset will experience a bullish uptick if the price stabilizes above the $0.3 initial support or/between $0.31 resistance. If the scenario persists, then the asset would breach it’s $0.32 barrier.

But a brief bearish trend can't be ruled out if the price finishes down at $0.3 or/between $0.28 key support. The bearish trend will prevail till the RSI settles from the oversold position and a bullish trend looks very much on the cards. Anything below that, expect a bearish trend.

Key Resistance Level: $0.31, $0.32 (highlighted by blue)

Key Support Level: $0.3, $0.28, $0.26 (highlighted by red)