It was a quick move even in the crypto universe that saw Ripple move like a tsunami. Over the last few days there has been a mass amount of news coverage on the bankster coin as it’s become the darling of a somewhat dismal week in crypto.
Starting off the trend, Ripple’s CEO Brad Garlinghouse was in the spotlight on CNBC showing the world how the existing financial community were adopting Ripple to become the settlement currency used for bank to bank lending across 27 Countries. This token, allowing major banking firms to settle massive loans in realtime, can slash costs up to 30% inherently creating real value for the platform and token. Let’s not forget that it was distrust in this style of inter bank lending that nearly froze the banking system at the height of the 2009 financial crisis. Now brought to the investing mainstream Ripple was on the tip of everyone’s tongue at holiday parties everywhere.
Adding to the coverage, Ripple has been rising up the ranks of crypto market cap and as I write this is sitting in second place right under BTC and usurping ETH for the first time. With a 100 Billion coin supply and a recent trading volume over 8 billion, liquidity isn’t a problem for Ripple. This large supply makes even a small move in price a giant move in market cap which is now sitting over 100 Billion, but still well shy of BTC’s 250 Billion cap.
As if the recent strength of it’s technical chart wasn’t enough to entice new money to the coin, the most recent catalyst for this move has been a report that over 60 Japanese and 20 South Korean banks are now bringing the coin mainstream after a number of successful test cases have been completed over the past few months. Ripple also boasts a transaction rate comparable to Visa and is available on over 50 exchanges worldwide.
Ripple’s value is clearly identified by it’s use case having a fast and secure network rather than a scarcity value like other coins offer. As more and more large customers from the financial industry come on board and Ripple continues to attract more attention as it rises in market cap, the run could continue for the foreseeable future.
Let’s have a look at the technicals
The recent monster move has easily brought Ripple to overbought territory even on the daily chart as shown in the RSI and MACD indicators at the bottom of the chart.
As money flows in it is hard to believe Ripple retracing much below the 38.2% line from the breakout at $1.14. A fall back to 50% looks like it could be a screaming buy point around $2 if we were lucky enough to get the opportunity.