- Ripple (XRP) under pressure
- $500 million has been spent in over 20 companies by Ripple’s Xpring.
Xpring has spent over $500 million in over 20 companies. Their focus is to “build the best crypto infrastructure through contributions to open source crypto protocols such as the XRP Ledger and InterLedger projects.” Even so, XRP is under pressure and down 15.1 percent week-to-date.
Ripple Price Analysis
Fundamentals
Adoption is the only catalyst that will turbo-charge blockchain related development. Standing to reap enormous benefits is Ripple. Armed with three innovative solutions, progress is excellent. Already, more than 200 global banks and financial institutions leverage the RippleNet, a suite of which xCurrent is popular.
However, the real game changer is the upgrade to xCurrent version 4, which has an option for xRapid. The insistence on xRapid is of prime importance for XRP holders. It uses XRP as a medium of exchange, and the more the adoption, the higher the demand the prices will respond accordingly.
Launched during the SWELL Conference of 2018, the conversion is low. The major obstacle is regulation and concerns about the level of centralization. Ripple remains to be the largest holder of the coin, using the proceeds to fund infrastructure development and innovation. Through Xpring, a recent report shows that Ripple has spent more than $500 million on different companies. Some of them include Coil, Kava Labs, and Forte.
Candlestick Arrangement
The gap between ETH and XRP is widening. At the time of press, XRP is down 15.1 percent in the last week and pretty stable in the past 24 hours. Although XRP is bullish and within a break out pattern against the USD, there are hints of weakness.
All the same, traders will maintain a positive outlook unless there is a breach below the 40 cents floor. Should bears press lower, the short to medium term trajectory of the coin will very much depend on the reaction at 34 cents and importantly 30 cents.
Regardless, there is an opportunity for aggressive traders, buying the dips with targets at 60 cents or higher. However, with stops at 34 cents, any destabilization forcing XRP to crumble will force their exit from this trade.
Meanwhile, the best strategy for risk-averse traders is to wait for a clear signal. That means a breach and close above 50 cents. Such a move will usher in buyers aiming at 80 cents while simultaneously confirming the bias of this trade plan.
Technical Indicators
In the short-term, June 27 bear candlestick leads this trade plan. Spelling high sell pressure, the bar has high trading volumes of 102 million.
Therefore, for trend continuation, buyers must not only erase losses of late last week, but behind their revival, there must be high participation, exceeding 102 million, propelling prices above 50 cents.
Chart courtesy of Trading View. Image Courtesy of Shutterstock