A lot of speculations were happening in the crypto market around the real value of the centralized cryptocurrency Ripple. Concerns about whether the cryptocurrency has enough USD to back each XRP, coupled with doubts about shady corporate deals and financial institutions were key factors in lowering its price down to around 25 cents for an extended period, after reaching an all-time high of USD 3.3. Will the current price increase keep its steady uptrend?
A brief history of Ripple
Simply put, Ripple is the company behind the centralized cryptocurrency XRP, with the main purpose of instant transfer of payment and a real-time gross settlement system. It relies solely on a shared ledger which is a distributed database storing information about all Ripple accounts.
XRP is the token used on the Ripple network to facilitate transfers. RippleNet is the network of institutional payment providers such as banks and financial institutions that are supposed to use the Ripple network to provide smooth transfer of money globally.
What happened to XRP back in 2017?
XRP was consolidating for a long period around 18 cents prior to the rise of the whole cryptocurrency. When the mainstream started to show interest in cryptocurrencies, XRP was among the most wanted cryptocurrencies:
The price of XRP shot from 18 cents all the way to reach its all-time high price of USD 3.3, or an increase in prices by 1,550% within 3 months!
Ripple price shoots 30% within 24 hours!
In the last 24 hours, XRP price shot up from USD 0.32 all the way to USD 0.42 or an increase of more than 30%. In fact, XRP has been on an uptrend since the beginning of November 2020.
This price increase was not the only green event that happened in the cryptomarket. In fact, all cryptocurrencies that have a value of less than USD 1 were seen on a bullish day:
- Stellar (XLM) : + 17.78%
- Cardano (ADA): + 15.08%
- Dogecoin (DOGE): + 14.73%
- IOTA (MIOTA): + 13.83%
- VeChain (VET): + 13.10%
How to prepare for the XRP Moon: Important Levels to Watch
The term XRP to the moon is still out there in the market, be it enthusiasts or critics. One thing for certain though is the ability to stay agile and know when to exit the market in case things turn sour, like the great crypto depression back in 2018.
For a healthy uptrend to keep up, a healthy price adjustment should take place, especially with the recent price increase like in figure 2. Plotting the Fibonacci retracement might give us a general idea of where to put our Stop-Loss exits. A general look back also shows strong consolidation areas and might be interesting areas of interest.
In figure 3, we can clearly look at the strong 50% fib level or the USD 0.33, which coincides with previous resistance areas from back in August that might turn into strong support levels.
For traders and investors who are just entering the market, it is safe to assume a strong support area at the psychological price level of USD 0.30. Otherwise, with strong market fundamentals, the price is expected to reach further areas of previous consolidation, such as the soft target of USD 0.50.
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Rudy Fares
