- Ripple price stable, reject lower lows
- Cobalt could be a game changer
- Transactional volumes below average
Behind Ripple is a team looking to revolutionize cross border payment through innovative solutions. Fundamentally, that is bullish. However, before investors reap benefits, XRP must first fund support at 30 cents. Only then will our previous XRP/USD trade plans be valid.
Ripple Price Analysis
Ripple’s ability not only to shape the future of finance but be the leading player cannot be rubbed off. Behind their motivation are three products which the company executives, as well as the ever-loyal XRP army, are banking on. Although we cannot dispute Ripple’s capability and their reliability, Ripple path to dominance is long and curvy. SWIFT, the banking network, undoubtedly is dominant. However, with the rollout of Cobalt will be a game changer.
Cobalt, Ripple’s say, is “a novel atomic broadcast algorithm that works in networks with non-uniform trust and no global agreement on participants and is probabilistically guaranteed to make forward progress even in the presence of maximal faults and arbitrary asynchrony.” It’s launch is tentative.
All the same, we already know what the launch will mean for staunch XRP fans: instantaneous settlements. Presently, XRP transaction settles in roughly four seconds. All that will change as payment will take one second before reflecting on a holder’s wallet.
After yesterday’s declines, XRP is steady, which is bullish for the coin. From our previous XRP/USD trade plans, we mention that the short-term trajectory of the currency will depend on the reaction at Dec 2018 lows of around 30 cents. The level is a key support line, and any break below this critical level could trigger a sell-off towards the all-important 25 cents.
To elaborate, 25 cents mark Sep 2018 lows and any rebound any drop below this point will mean the successful rollback of Q3 2018 gains. That will effectively nullify our bullish stand. Because of this, it is essential that XRP find support at spot levels.
After all, there are hints of lower time frame support. Note that today’s and yesterday’s bear bars had long lower wicks point to demand in smaller time frames. Then again, these bars had short upper candles meaning sell pressure is low.
While we are bullish, we expect to see an increase in trading volumes. Today’s averages are low—at 14 million. Technically–and from an effort versus result perspective, rallies extending above 34 cents should be off a conspicuous by a bull bar. Behind this candlestick bouncing off 30 cents should be high trading volumes exceeding Jan 28’s 31 million. If not and prices drop below 30 with high volumes—above 31 million, sellers are likely to recoup Sep 2018 losses.
Let’s block ads! (Why?)