Quite unexpectedly and without a major announcement either from the SEC, CoinBase or Ripple, XRP prices are up 20 percent fading the general trend. The result is that notable expansion of trade volumes and a spike above 30 cents triggering previous buys and hitting stops. Though XRP is technically bearish due to the effect of week ending Aug 12 break out candlestick, any surge past 40 cents to 45 cents resistance might be the fuel needed for further gains.
Latest Ripple News
Obviously, the determination by the SEC on whether XRP, the native coin of the Ripple ecosystem, is an “investment contract” that abides by Howey Test stipulations is a cause of worry for investors and community as a whole. That is why, recent on-chain developments and inevitable upgrade of the XRP Ledger Network to version 1.1.0 is something of an excitement. It’s easy to see why: These developments provide a road map towards more transparency, network security and complete decentralization neutralizing impacts of third parties on price.
Among the implementation is the introduction of DepositPreAuth Amendment that when coupled with DepositAuth Amendment can aid the user in whitelisting addresses and even pre-authorize incoming transactions. These on-chain improvements which the team is urging nodes to adopt before the end of the month would enhance safety and in the process spurring wholesome, global adoption.
This and more of Ripple goals were further elaborated by Sagar Sarbhai, the head of Regulator Relations at Ripple for Asia Pacific and Middle East. Aside from hinting that xRapid—a payment processing solution that has been piloted by different remittance providers as Western Union, would officially launch in the next month or so, he also said the company has been actively engaging the SEC explaining to them the different user case of XRP. This is in their bid to demonstrate that XRP is not a security and that there is no one entity, a third party that could influence the price of XRP at the expense of investors.
XRP Price Prediction
Weekly XRP Price Charts
Once again, the main support line at 25 cents did support XRP prices. The result has been the emergence of sellers and a double spike of price and market participation. While week ending Sep 9 bear candlestick continues to seal bullish attempts as the chart shows, XRP bulls need more than yesterday’s gains for trend reversal validation.
From previous analysis we reiterated that for XRP buyers to emerge on top then there should be strong closes above 45 cents on the lower side and 55 cents on the upside before conservative traders can enter the market and buy on dips. This would be a break off the two-month consolidation and reversal of week ending Aug 12 losses. Before then, we should take this revival with a grain of salt.
Daily XRP Price Charts
Two things are clear in the daily chart. First, the remarked increase in market participation levels, that is, volume. Secondly, the reversal from 25 cents right off the bottoms printing a bullish engulfing pattern as a result.
From the chart, not only did this 20 percent spike reverse Sep 17 losses but prices did close above 30 cents activating stops and activating short term bulls with targets at 40 cents—the main resistance trend line. Factoring it these rapid gains, we recommend short term buys on dips with targets at 40 cents.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.