Ripple, the cryptocurrency founded by Ripple Labs, has experienced a small price increase of 4.79% over the past 24 hours. XRP, is currently trading at a price of $0.47, at the time of writing, and this comes after a 30 day trading period of up to 12.82% declining prices.
Ripple was created to allow for faster transactions in banking. They are in the process of trying to replace the SWIFT banking mechanism that was created in 1973 and have already partnered with over 100 banks and financial institutions including MoneyGram, Santander and SBI Holdings.
Ripple can currently handle up to 1500 transactions per second. This is much higher than the 7 transactions per second that Bitcoin can handle or the 25 transactions per second that Ethereum can handle. However, 1500 TPS is significantly lower than the 25,000 TPS delivered by VISA.
Ripple is currently ranked at 3rd place in term of overall market cap with a market cap value of $18.30 billion.
Let us continue to analyse price action for XRP over the short run.
XRP/USD – SHORT TERM – DAILY CHART
Analysing the market from the short term perspective, we can see that since our last technical analysis article, the market broke well below our expected support at $0.45. In fact, price action dropped below the low of $0.45 seen in April and continued dropping until it found support at the downside 1.618 Fibonacci Extension priced at $0.42, where it rebounded.
Price action is, once again, currently trading at resistance near the price lows of April, the purple line, priced at $0.47. It is also important to note that this area of resistance is bolstered by the 21 day EMA (purple falling line) adding to the expected resistance in this area.
If the bullish momentum recently witnessed can continue and push the market beyond $0.47 then we can expect near term resistance to come in at the 1.414 Fibonacci Extension priced at $0.49. If price action con continue with bullish momentum then further resistance can be found at the long term .886 Fibonacci Retracement (marked in red) priced at $0.54, followed by the downside .618 Fibonacci Retracement priced at $0.59.
Alternatively, if the market dips is overcome by resistance at the 21 day EMA, then near term support can be found once again at the downside 1.618 Fibonacci Extension priced at $0.42.
The technical indicators within the market have started to show favour toward the bulls. The RSI has recently broke above the 50 handle indicating the increased bullish momentum within the market. If it can continue to remain above the 50 handle we can expect the bullish momentum to continue.
Let us continue to quickly analyse XRP price action relative to BTC.
XRP/BTC – SHORT TERM – DAILY CHART
Analysing the chart from the short term perspective above, we can see that the market has arrived at our expected support level of 7000 SATS where it is currently trading at support. This level is the starting level of the bullish run seen in April when price action rose from a low of 6890 SATS to a high of 11,000 SATS, a 60% increase in price.
If the market can garner some bullish momentum from this level of support then near term resistance is expected at the short term .886 Fibonacci Retracement priced at 7386 SATS. Further resistance is expected at 7794 SATS which is the .786 FIbonacci Retracement and also the July monthly high price.
Alternatively, near term support comes in at 7000 SATS once again if the market rolls over and turns bearish. Further support below this level can be located at 6881 SATS.
The RSI is trading well below the 50 handle indicating that the bears are still in control within this market. However, the RSI is approaching the 50 handle, if it can break above the 50 handle this would indicate that the bullish momentum within the market is growing.