If anything, there is some degree of undervaluation as far as Ripple (XRP) performance is concerned. As an altcoin, there should be some degree of magnification when Bitcoin (BTC) swings. This time, the prices of the most valuable coin swung up and Ripple (XRP) unlike others didn’t register big gains. That’s unusual.
On the flip side, it may be what Ripple Inc executives desire. Brad Garlinghouse, while projecting his optimism that many banks will make use of their network by the end of last year also said in his perfect world, the prices of XRP should completely decouple away from Bitcoin whims. It may or may not be happening. In our view, prices are steady and bulls are lax to push higher because of deep liquidity thanks to exploding volumes thanks to their exposure to more than 26 million customers trawled after CoinBase listing.
Market moving news/announcements?
Add that to scarce, market moving news related to the third most valuable asset, it may take a week before prices rally and close above important upside barriers. Besides, questions on the veracity of XRP as an independent, decentralized and community control token continue to linger.
At one end, we have supporters unwavering stance that XRP despite centralization claims is a utility whose functionality will not come to a halt even when Ripple Inc liquidates.
On the other, we have critics who think XRP is just pump a tool, a pump and dump scheme, an air-drop that is not needed for Ripple Inc main products to function. In their argument, XRP should be not be in existence. If that is the case, that will somehow affect price and clarification if not guidance is definitely needed from an authority—the US SEC.
XRP/USD Price Analysis
From a top down approach, XRP bears are attempting to wrest control from bulls but the latter are firm and yet to print above last week’s close. The coin is down 1.5 percent and after yesterday’s upswing, there is an opportunity for traders to add on to their longs on every dip.
Ideally, that is exactly what we need but that is unless prices edge past 34 cents. As a minor resistance level, the tops of a consolidation flashing well with the 61.8 percent Fibonacci retracement level of Dec 2018 high low, our long insistence will only be valid once prices edge past this mark complete with above average trade volumes.
In our case, we need prices to pump will high volumes as tailwind propelling XRP prices to above 40 cents and later 60 cents as laid out in our previous Ripple (XRP) price analysis.
All charts courtesy of Trading View—BitFinex Streams
This is not Investment Advice. Do your due Diligence.