Ripple Finds Support After XRP Plummets From $0.90 Cents
- Ripple has found strong technical support above the last weekly price close.
- On-chain data from Santiment highlights massive user adoption.
- Sygnum Bank rally behind XRP as it introduced crypto-related services for its clients.
Share this article
Ripple was among the worst-affected cryptos this week, following reports of new U.S. regulations that would hamstring the industry. In a single day, XRP hemorrhaged 33% of its value.
Has Ripple’s XRP Found a Bottom?
The popular altcoin enjoyed a much-awaited bullish breakout before the pullback, with XRP outperforming the top ten tokens in the crypto market.
Ripple is one of the top coins used for crypto payments by PayPal, while Sygnum Bank introduced XRP-related services for its clients this year, suggesting steady user growth heading into 2021.
Looking at the technicals, a weekly close above the $0.50 level should reinforce bullish sentiment towards XRP, meaning that traders could target a price recovery back towards $0.70, and ultimately the $0.90 area.
The William Alligator indicator also supports a bullish medium- to long-term outlook for XRP while price trades above $0.50. Indeed, the recent sharp price drops may have given traders another chance to scale into XRP.
The Relative Strength Index (RSI) on the daily time frame was also extremely overbought and traded above the 90 zone region early this week.
Extremely overbought RSI readings are usually preceded by a healthy price correction, as we saw on Nov. 25. The index also shows more downside, meaning that XRP could depreciate further over the coming days.
A weekly price close below the $0.50 support level, for example, may incite more short-term XRP selling pressure towards the September 2020 highs, around the $0.35 mark.
Again, this may be an excellent buying opportunity for XRP bulls.
On-chain data analysis from Santiment shows a rise in new daily active addresses, suggesting new money is buying XRP.
The number of unique addresses transacting on the XRP network in a single day hit 24,408 this week, marking the highest output in this metric since May this year.
Social engagement has been on a sharp rise too.
The volume for social mentions skyrocketed across major social media platforms, reflecting the recent price appreciation and increased XRP user adoption.
Traders will continue to track XRP over the coming days, as this is a critical time for the cryptocurrency’ss direction. Whether the market has turned, and indeed if a meaningful bottom has already been established, it remains to be seen.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Source: Read Full Article