The headlines continue to flow for the Ripple community as partnerships and developments flourish.
Recently, Western Union made a statement that they are ready to adopt any kind of currency. The company has been testing Ripple’s xRapid platform for a number of years now, and it seems that the long wait is starting to pay off.
Forbes has also expressed bullish sentiment, speculating that Ripple may thrive in2019. They mention the fact that Ripple is the strongest performing cryptocurrency among the top 3, something which should be expected to continue as the Ripple team explores further partnerships.
However, not all the news has been great news.
The question of whether the XRP is a security token or not has not dissipated by any means. In the latest Ripple AMA, CEO Brad Garlinghouse addressed the topic once again as he stated “Ripple is clearly not a security.”
In the AMA, Garlinghouse reiterated that XRP is not tied to the company Ripple in any way whatsoever. Elaborating further, he said that if the Ripple Labs company was shut down tomorrow, the XRP token will still continue to trade on the hundreds of exchanges that it is available on.
In other Ripple news, Ripple’s head of global banking, Marjan Delatinne, alluded to the fact that banks are still not comfortable using xRapid or any kind of other cryptocurrency for that matter.
This is largely due to the uncertainty regarding regulations. As the framework is not very clear for banks, this lack of clarity is keeping them from entering the crypto industry.
Let’s now analyze price action for XRP/USD over the short term and highlight any potential areas of support and resistance.
Ripple has seen a small 3.18% price increase over the previous 24-hour trading session and a further 26% price hike over the past 7 trading days. The cryptocurrency is now trading hands at a price around $0.3927, at the time of writing, after suffering a 30-day period where price action had dropped by 19%.
Ripple is still ranked in 2nd position and presently retains a $15.62 billion market cap value. However, the 65-month old cryptocurrency is trading at a price that is still 89% lower than the all-time high value.
Analyzing price action from the short-term perspective above, we can see that XRP/USD had dropped below our expected support at the $0.30 handle.
However, this was a marginal drop into the $0.28 region, and was short lived as the market rebounded and proceeded to rally.
XRP/USD continued to surge over the past few days until it reached strong resistance at the $0.4022 handle, provided by the long-term .886 Fibonacci Retracement level (drawn in black). XRP/USD retraced slightly from this level to find support at the short-term .382 Fibonacci Retracement level (drawn in red) priced at $0.3593.
The market has once again surged in today’s trading session where it is presently trading at the $0.39 handle.
The trend has now shifted from its previous bearish trend into a short-term bullish condition. If we would like to see the price ascension continue, we would need to see XRP/USD break back above the strong resistance at the $0.40 handle.
For this market to be considered bearish once again, we would need to see XRP/USD fall considerably and break below the previous low around the $0.28 level.
If the buyers can cause XRP/USD to climb above the $0.40 handle, we can expect immediate resistance toward the upside to be located at the short-term 1.272 and 1.414 Fibonacci Extension levels (drawn in purple), priced at $0.4178 and $0.4327 respectively.
If the bullish pressure continues to drive the market even higher, more resistance toward the upside can then be located at the 1.618 Fibonacci Extension level (drawn in purple) priced at $0.4542. This is followed by further resistance at the long-term .618 Fibonacci Retracement level (drawn in green) priced at $0.4659.
The next level of major higher contention for Ripple to break above will reside at the psychological resistance level at $0.50.
If the sellers begin to overpower the buyers and push price action for XRP/USD lower, we can expect immediate support below to be located at the short-term .236 and .382 Fibonacci Retracement levels (drawn in red), priced at $0.3769 and $0.3593 respectively.
Further support beneath this can be expected at the short-term .5 and .618 Fibonacci Retracement levels (drawn in red), priced at $0.3451 and $0.3310 respectively.
The question as to whether Ripple is a security or not will continue until the SEC clears up the matter. Despite this, the Ripple team continues make waves within the cryptocurrency industry as they continue to grow their xRapid partnership base.
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