The Ripple price is on a downward spiral. Although bulls are confident of recovery and higher highs, the unexpected twist on Dec 12 could slow down their rally.
On Dec 12, a day when XRP balances of holders were being snap-shot at different exchanges including Coinbase Pro and Binance, the coin tanked by double-digits hitting lows of $0.48 (Bitfinex data).
Prices have since recovered. At the time of writing, the Ripple price is trading at $0.50 within the bear candlestick bar of Dec 12 with comparatively low trading volumes. Week-to-date, it is down 16 percent.
Ripple (XRP) Price Overview
The XRP price is trading within a bull flag.
After the November uptick in both prices and trading volumes, it appears the uptrend is waning, and sellers may be taking control—at least for now.
Even so, possible props are hints from the daily chart and reactions at key reversal points from the November 2020 trade range.
Overly though, the immediate term price action may determine the trajectory of the XRP/USD in the tail end of 2020. First, the coin is trending inside Nov 26 bear candlestick with relatively low trading volumes, as aforementioned.
For now, the immediate support and resistance level stand at $0.40 to $0.45, on the downside, and $0.68 to $0.70, on the upside, marked by 61.8 and the 23.6 percent Fibonacci retracement levels, respectively.
Any breakout beyond these points will signal either buyers or bears that may drive XRP prices back to $0.30 in the medium term.
Ripple (XRP) Market Movers
After Dec 12, what remains is the launch of the Flare Network. For starters, Flare is based on Ethereum. However, it allows the creation of bridges between two distinct networks.
As one of their earliest applications, Flare will create a bridge between Ethereum and the XRPL. The latter is the open-source and scalable ledger pinning Ripple’s Internet of value (IoV).
The FLR—or spark, is the native currency of the Flare network and 45 million will be airdropped to XRP holders on launch.
However, a true deal maker is Codius, an upgrade that introduces smart contracting in the XRPL. It will benefit from what XRP is and the goals of the Ripple top brass.
The XRPL is for banks and if Bitcoin questions the foundation of banking, Ripple is geared on a specific niche that is rigid to change and not tampered with in over 40 years.
With smart contracting, partner banks will automate processes completely revolutionizing cross-border transfer, potentially disrupting the $1 trillion derivatives market.
Ripple (XRP) Price Prediction
After strong moves in November, it appears prices are peaking.
Week-to-date, made worse by losses over the weekend, is down 16 percent. However, it is stable on the last day of trading.
From the daily chart, the XRP price seems to be rebounding from the 50 percent Fibonacci retracement level of the Nov 2020 trade range.
However, accompanying volumes are light. Therefore, for a convincing double-bar bullish reversal pattern to form, prices must completely reverse losses of Dec 12 ideally with a noticeable change in trading volumes.
Note that the XRP prices are trading not only within Dec 12 bear bar but largely inside Nov 26 bar with comparatively low participation. While the action is, from a top-down approach, inside a bull flag, risks of lower lows are present more so if last week’s losses persist, spilling over to this week.
Losses below the support zone bounded by the 50 and 61.8 Fibonacci retracement levels may open up the Ripple price to $0.30 (the 78.6 percent Fibonacci level or Aug 2020 highs) in a retest further confirming the double bar bear reversal pattern of Nov 30 and Dec 1 that was set in motion by Nov 26 losses.
Conversely, gains above $0.70 nullify losses of Nov 26 opening the Ripple price to a possible new 2020 high above $0.78 of Nov 2020.
Chart Courtesy of Trading View
Disclaimer: Opinions are those of the author, and are not financial advice. Do your research
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