Week over week, Ripple tokens (XRP) prices are down 12 percent but surprisingly up two percent in the last 24 hours. In any case-unless of course we see rejection of XRP lower lows, these attempts of XRP higher highs are but technical short coverings. Check out those dismissive level of market participation which advice this skew. Anyhow, sellers seem to be in charge and bear manifestation would be there should we see breaks below 50 cents.
Let’s have a look at the charts:
From the News
It’s no doubt that we are witnessing a technological revolution. To say there would widespread adoption of cryptocurrencies as Ripple in the short term is but an understatement. According to the US CFTC’s Rostin Behnam, cryptocurrencies are not going “anywhere”. In fact, he believes that every economy across the world will have to get used to them as it will be part and parcel of their respective economy.
Perhaps this is the reason and a forward-thinking approach that several pro-cryptocurrencies and blockchain as Japan and Switzerland have taken. Russia was even planning on creating their own central bank backed cryptocurrency, the cryptoRubble while Venezuela has their own oil backed crypto, the Petro. Will Ripple cope with this regulatory warming view from several countries or will these very institution leverage on their infrastructure to make things easy? Well, time will tell.
In the meantime, some users are beginning to take note of Ethereum’s new proposals that would infinitely scale their network. Yes, while the network is not working miracles and processing thousands of transactions, it’s theoretical 15 TPS is just it: Theoretical. And it is something that Vitalik mentioned a while back during OmiseGo’s AMA session. He said Ethereum’s capacity peaks at 6 TPS but plans of data shards and plasma which is nothing more than an offline solution should be every user scaling panacea.
What everyone is posing is: Would Ethereum’s future ability to handle “Hundreds of Thousands” of transactions per second be a threat to Ripple which can handle 1500 TPS? Will Cobalt Algo save the day with its promise of superfast settlement? As always, we cannot be 100 percent sure, the technology is still at it’s infancy. Plus, talk is cheap, let’s see what their developers will present to their users.
Ripple (XRP) Technical Analysis
One thing is clear, since mid-May until now, XRP has been in consolidation whose floor is at 40 cents with resistance around 75 cents or so. While we are positive of possible recovery despite these strong sellers, it will be subject to what happens in the next few days or weeks. In my view and this should be straight forward, what we need to see is strong moves above 75 cents.
Conversely, for sellers, we should see a strong break below 50 cents, a region of strong support clear in the last three quarters or so. Otherwise, if this horizontal consolidation continues like it has been the case, we should expect a strong break out in either direction. However, in light of how technical indicators have been set up despite relatively warm news, sellers might end up taking control.
The ranging price action is clear in this chart and in the last couple of weeks-actually the whole of May-sellers have been trying to reverse April gains. They have been largely successful since prices are down more than 70 percent from April highs of around $1. Now, here’s the deal, since prices are almost at the floor of this channel, I shall hold of suggesting shorts and instead what to see what happens today or the next days. If there is a recovery in line with June 11 bullish pin bar then we need to see appreciation past 70 cents before we take XRP long calls. Otherwise, any close below April lows of 50 cents would be a perfect signal for further sells.