Despite rampant XRP sellers, fundamentals are bullish just like as predicted by SVP Customer Support of Ripple in Q1 this year. In fact Ripple and their core products have caught on that the RBC Capital Market did mention the benefits of Ripple solutions when financial institutions use them. This is positive for Ripple and could help XRP recover in the short term even if the coin—acting a liquidity tool—should be by design, cheap.
From the News
That the ride has been smooth for Ripple the company is a lie. Brad Garlinghouse led Ripple is obviously trying hard to purge off misconceptions about its leadership structure, the legitimacy of XRP and pleasing the SEC. Not surprising, are mute about the whole security—utility saga which in turn is negatively affecting the third most valuable currency in the world.
Besides the wave of social pressure–which induced a split in the company in Q2 2018, there are disgruntled investors and partners who think Ripple–and XRP in that case–is a security. In recent court proceedings complainants insist that they are now in loss territory because the marketing team fed them lies. A stand out in all this is the cease fire between Ripple Labs, the creators of XRP and R3 Consortium.
In a press release that circulated yesterday, the two decided to find an amicable off-court solution after a year of court battles and unnecessary attention. R3 argues that Ripple did breach a coin purchase agreement that could have seen R3 Consortium purchase 5 billion XRPs, in part or as a lump sum, at $0.0085 by Q3 2019.
On the other hand, Ripple the company said the consortium did not live to its expectation neither did they progress to the “end game” of seeing commercial scale adoption of XRP and Ripple products. After coming to terms that the partnership was a failure, Ripple pulled out and terminated the contract.
The details of the settlement are under the wraps for now but once they begin permeating through the web, the community shall get to know what concessions the company made.
XRP Technical Analysis
Weekly Chart
If anything, a single glance in the weekly chart hints of a market in decline. Week over week, XRP is down 22 percent with last week’s losses confirming the bear break out of week ending Aug 12. Then, XRP prices closed below 40 cents after a two-month horizontal consolidation between 40 cents and 55 cents on the upside.
The same move was replicated last week when prices did breach the 30 cents mark—our minor support line, triggering sellers as a result. Considering these two-high volume, wide trading range printing in the last month or so, it’s clear that the path of least resistance is southwards.
Therefore, we suggest selling on every high in lower time frames with targets at 15 cents. Safe stops should be at 30 cents while any appreciation above 40 cents nullifies this XRP sell projection.
Daily Chart
Back in the daily chart, yesterday’s three percent loss did steel bears. While sellers didn’t breach and close below the main support line at 25 cents, it’s likely that conservative trades might go live today.
However, that depends on if sellers drive prices below Aug 14 lows at 25 cents in the process triggering sells. Once that happen, the risk on traders can always search for unloading opportunities in lower time frames with targets at 25 cents and stops at 30 cents. On the other hand, aggressive can short at spot rates and place stops at 30 cents.
Overly, we remain cognizant that any move above 40 cents reverses Sep 5 losses nullifies this forecast.
Disclaimer: This is not investment advice and views represent that of the author. Do your own research before making an investment decision.
Posted from my blog with SteemPress : http://www.nairalandcrypto.com/xrp-price-analysis-as-long-as-banks-adopt-xrapid-xrp-will-always-be-under-pressure/