Ripple provides businesses with a blockchain network to facilitate cross-border payments more efficiently, crypto liquidity management services and facilitate implementation of Central Bank Digital Currency (CBDC).
Investors have demonstrated an enthusiastic response to the project’s future potential. This excitement has been further cemented with Blackrock announcing they plan to provide XRP investment products.
Price Analysis
Ripple has made waves this week on the crypto market. Investors appear comforted by Judge Torres’ ruling which resolved some regulatory uncertainty regarding XRP coin.
Ripple Labs created its blockchain protocol and token, known as XRP, to facilitate cross-border transactions at lower costs than traditional banking systems. You can exchange fiat currency for digital assets, frequent flyer miles or mobile phone minutes using this digital token.
The price of XRP has been trading above the $0.4750 support level against the US Dollar and looks likely to continue its upward journey as long as it remains above this support. Should it breach this support level, however, if this trend continues it could reach and test $0.5000 resistance level; MACD indicators on hourly charts are slowly moving into bullish territory while the RSI indicator sits comfortably above 50 level.
Technical Indicators
Ripple Labs Inc has designed Ripple as a real-time gross settlement system and currency exchange network using its native cryptocurrency XRP to process transactions on its network. Although the two are often confused with each other, each serves a separate function.
Since reaching a new yearly high in July, XRP has steadily been declining. This drop was supported by bearish readings on weekly timeframe and its break down from an important horizontal support area at $0.56 that served both as support and resistance since April 2021.
On Balance Volume (OBV), a momentum indicator that uses price changes and volume flow to predict future price movements, is another important indicator. Rising prices should coincide with an increasing OBV; otherwise if prices start falling while OBV remains flat-lining or dropping then price bottom may be close by using OBV we can see that prices have fallen below MA200 and MA100 moving averages.
Trading Strategy
Ripple trading strategies come in various forms; one way is buying and holding for long-term speculation, hoping the price will eventually increase in value. Another approach relies on technical analysis such as swing trading.
AvaTrade provides XRP/USD CFDs that enable traders to track price movements of Ripple without physically owning or storing it, creating more flexible trading opportunities than purchasing and selling physical crypto assets.
traders can also leverage our extensive range of tools and charts to identify trading opportunities, including indicators, oscillators and moving averages. These indicators can provide crucial signals of when an asset’s trend may reverse or whether there’s still potential in an asset’s price rise – these tools help traders maximize their profit potential.
Conclusions
Ripple continues to forge new partnerships, integrations, and MoUs as its unique consensus mechanism sets itself apart from Bitcoin and Ethereum that use Proof-of-Work or Proof-of-Stake protocols respectively.
Ripley’s XRP platform is one of the fastest blockchains currently available, supporting interbank transfers within seconds and processing up to 1 Million Transactions Per Second (TPS).
The company’s fight with the SEC hasn’t come to an end yet; the regulator has accused XRP of selling unregistered securities worth $1.3 billion without proper registration, potentially subjecting them to substantial fines if successful. Judge Analisa Torres recently issued a ruling clarifying XRP’s non-security status and could encourage investors to continue buying it; should they fail, however, disgorging assets sold may become compulsory for it as part of any settlement with them in future cases brought by SEC wincases against it and any fines could amount to massive fines and disgorge any assets sold or returned in previous transactions in future ones.
