Market simply ignores Ripple’s rapidly growing adoption
Over the past few months Ripple has enjoyed a series of positive news. Most of them were around the XRapid, that is faster and cheaper payment solution. With xRapid, money can be transferred between banks almost instantly, with XRP cryptocurrency being intermediary. Funds can be transferred with the local currency and then exchanged to the XRP, that is before sending them to any country though Ripple blockchain. Then funds are exchanged to the local currency.
This type of money transfer would be at least 70% cheaper than a regular bank transfer and would be executed almost instantly. This could make Ripple the most used currency for transfers between banks, therefore resulting in XRP mass adoption and increase in price over short to medium term.
The most recent news announced on the October 4, is that Japanese Bank Consortium launched an app that uses Ripple for instant domestic bank transfers. This is another great news for XRP, which is likely to attract millions of users worldwide.
And finally, Singapore-based Paycent has made an announcement that they will add XRP, making their uses able to withdraw fiat currency from the ATMs in the beginning of November.
Truly, a very positive fundamental news, but it seems that market is simply disregarding them completely. After Ripple has topped out on the September 21, investors started to dump the XRP coin. Today it is traded at $0.46 that is 40% cheaper than one month ago. Currently the downtrend still seems to be valid as price produces lower lows and lower highs.
Nevertheless, the support was found at $0.38, which is 50% Fibonacci retracement . After the bounce price went up, and bounced off the 61.8% Fibs at $0.53. At this time, XRP/USD is trading near the 200 Moving average, which is being rejected so far. This could result in the short-term growth. Although for the price to establish an uptrend, $0.53 resistance area must be broken.
As the trend is bearish, the probability of a price decline remains very high. If $0.43 support will be broken, XRP should go down to next support at $0.38. Break below $0.38, might send Ripple much lower, potentially towards the 13 August low; $0.24 support area .
In a nutshell, short term is down and Ripple might lose another 50% to the USD. However, investors might get attracted if $0.53 resistance area is broken. In this case trend should become bullish, sending price to the next resistance at $0.7.
Disclaimer: This report is originally posted on TradingView and is for educational and informational purpose only. This post does not constitute an endorsement, recommendation, or offer to sell. Please be guided accordingly.