One month after prices reversed from 25 cents, XRP/USD seem to be resuming trend after Nov 6 bull rally. The cause has not been substantiated but many are linking the drive above 55 cents to SWIFT RippleNet integration and a host of other factors as Ripple partnership acceleration and SBI Group XRP advocacy.
Latest Ripple News
Despite the market downturns that has seen XRP/USD pair fall more than 80 percent from 2017 highs, XRP remains a buy from a fundamental point of view. This is so because the Ripple, the software company whose solution xRapid make use of XRP, has increased the number of partnerships. Not only are we seeing service providers as Wirex availing XRP to their customers allowing direct expenditure but more others as SBI Group are advocating for projects within their immediate circle to use XRP.
Of course, the benefits of leveraging XRP are many and aside speed, efficiency and cost cutting, there is fluidity brought by linking to a wide and deep network of banks and service providers. As such funds to move faster without technical hitches or latency. This is unlike traditional set-ups where there are frictions leading to more costs which are piled on to the end users.
Combined with rumors that SWIFT will be upgrading their protocol incorporating XRP led to an immediate price expansion. Though this partnership is quite surreal and is what the community would want to see, SWIFT spokesperson denied this speculation saying that the company is keen on improving their own network. As a matter of fact, the company plans to upgrade their Global Payment Innovation introducing real time transaction tracking capabilities.
XRP Price Analysis
XRP/USD Weekly Chart
Thanks to rapid price expansion of week ending Sep 23, XRP/USD pair did print a conspicuous bullish break out pattern triggering a wave of buy pressure across the board. Though prices have since corrected only expanding yesterday, traders had an opportunity to buy at spot rates with first targets at 80 cents and $1. Nevertheless, with prices now trading above the 55 cents bull trigger level marking the 50 percent correction level as laid out by the Fibonacci retracement tool anchored on Sep high low, traders can begin searching for bull entry positions in lower time frames.
XRP/USD Daily Chart
Back in the daily chart and we have a clear bull break out trade pattern. This confirms our previous XRP/USD trade plan and our assertion of buying on dips as long as prices were trending inside our buy zone marked by the 78.6 percent and the 50 percent Fibonacci retracement levels caging prices within a 15 cents zone. All in all, yesterday’s event did trigger conservative buys and those who are yet to buy can do so at spot with stops at Nov 6 lows at 50 cents. Like before, first bull target is 80 cents and later $1.
All Charts Courtesy of Trading View
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.