- The XRPUSD market has closed with a gain for the second time this week.
- Ripple chart shows a bullish market in the last few days starting from 6 September 2020.
- Prices are trading with a high likelihood of testing the upper trendline of the channel.
- The Bollinger Bands on the one-hour charts show low volatility for the cryptocurrency.
- Banks across the world have in recent times integrated Ripple in their system.
XRPUSD opened at $0.245 reaching highs o $0.249 within a few hours. At press time, the crypto prices had fallen to 0.246, a 0.22 price percentage gain for the day. This marks the second consecutive day that the market has closed with a gain this week, after closing yesterday with a 1.4 price percentage gain.
XRPUSD Technical analysis on the daily chart for long term traders
The daily Ripple chart shows that the market has been bullish in the last few days, a move that started on the sixth. The Crypto has also been trading within an ascending channel which has acted as support and resistance in the past few days.
Bollinger Bands on the daily chart shows that the prices are bouncing back from the lower Bollinger Band, a strong sign of a strong bullish move. The momentum of the bounce, however, is low with the daily price range showing reduced volatility compared to the just concluded bearish move.
The RSI and the MACD on the daily charts are also aligned, with MACD showing the moving averages below the baseline, but converging towards it, indicating a bullish move in the offing. The RSI also indicates that the market is coming out of an oversold position and showing signs of a bullish market.
Lower timeframe: 1-hour chart
The one-hour XRPUSD chart gives a clear indication of where the prices of the crypto are headed. The XRPUSD has been trading on an ascending channel from 6th September, forming support and resistance on the lower and upper trendlines respectively.
The chart shows that the latest resistance and support levels were formed on the 13th after the market hit both the upper and lower trendlines at $0.253 and $0.237 respectively. At press time, the prices are trading within the ascending with a high likelihood of testing the upper trendline of the channel.
The Bollinger Bands on the one-hour charts are squeezed, showing low volatility for the cryptocurrency, in the last few days. The prices are also touching the upper band, and with a combination of the RSI and MACD indicators, which shows the prices continuing to rise, there is a huge likelihood that the prices will break above the upper band of the Bollinger Band, starting a strong bullish move.
Long term Ripple investors should be happy with the latest moves that the crypto has been taking of pushing for regulations in the crypto markets. Although this move has led many to accuse the crypto of being too centralized, the Ripple team are planning for the long term, when the crypto market is fully integrated with other institutions and integrated in the day to day lives.
Due to its transparency, banks across the world have in recent times integrated the crypto in their system. This includes Europe’s banking giant, HSBC Holdings Plc, with assets of about $2.5 trillion, which disclosed last year that it will be using Ripple’s payment solutions in their systems. XRP is attractive to financial institutions such as banks, which are Ripple’s biggest clients
Just a few days ago, Ripple was trading below $0.25 and still banding along with the lower BB hinting of strong bear pressure, disappointing optimistic bulls. There are brighter prospects for the crypto as Binance Futures recently announced the launch of Ripple (XRP) perpetual contracts paired against the USD supporting leverage of up-to 75X.
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