Chances for Ripple to Recover
Ripple is gradually recovering after the selloff in January, although not very actively. The bulls are still wary, while the price has gone above $0.91, which is a signal for stabilization, as Dmitriy Gurkovskiy, Chief Analyst at RoboForex concerns.
The buyers succeeded in pushing the coin towards $0.95, which was the downtrend resistance, and then went ahead to $0.9550, which lead Ripple to the current price and the test at $1.02.
Speaking short term, the situation is mixed and looks like a whipsaw, with every next step of the buyers being less effective, and the momentum being exhausted. In fact, Ripple is consolidating between $0.9017 and 1.0760, and the coin is going to trade sideways until one of these boundaries is broken out. This is a rare case for cryptocurrencies, as those, including Ripple, are generally very volatile. If this is the case, one may expect this sideways trend to be there not for much longer.
In the mid term, Ripple is looking quite positive. The coin went above the strong support at $0.90, and the overall trend may switch to bullish. Currently, the secondary resistance at $1.0265 is being broken out, while the buyers are not that active. Still, if Ripple manages to make this breakout today or tomorrow, chances for the price going ahead towards $1.0760 will get higher.
The MACD is signaling for the bearish trend reversal into a steady recovery. Meanwhile, stochastic oscillator is ready to break out the neutral area and switch from falling to rising. This also signals that the market is ready to buy, although such signals are not strong enough yet. Major support levels for Ripple are currently $0.90 and $0.92, while key resistance is at $1.0265 and $1.0760.
The fundamental supporting factor we mentioned before has not been priced into Ripple yet. We are talking, of course, about news of xCurrent owned by Ripple being able to get implemented in the Chinese online market. Needless to say, this could offer very promising opportunities for the participants of such a partnership. Ripple services enable quick and cheap transactions, including overseas ones, which is in a very high demand in online markets that attract so many customers throughout the world. Ripple can also offer solutions for specific financial schemes that cannot be achieved with traditional banks and payment systems. Of course Ripple is not alone in this field, but even the participation in such a chain and on such a high level is already a very serious step for any advanced system.
Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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