In Summary
- Ripple is a top-profile project.
- Despite the troubles in the recent past, the team is unyielding, continually developing.
- For instance, days after the December 23 bombshell by the SEC, XRP prices bounced backs steadily from the initial shock.
- At the time of writing, XRP is trading above $1, adding seven percent on the last trading week, and looks firm on the previous day.
- Reading from price action, the selling pressure is waning, and Ripple buyers are confident.
Ripple Market Overview
Presently, there are series of higher highs building on the revival of the end of September.
The October 3 bull bar confirmed buyers of October 1, thrusting the coin above the middle BB—a signal of strength.
Meanwhile, the reversal of September 20-21 losses can be traced back to the gains of October 1. The candlestick, from a technical angle, distinguishes itself from the rest based on the participation level.
Out of this, a classic three-bar bullish reversal pattern marked the end of the second half of September’s bleed.
Besides the three-bar bullish continuation and close above the middle BB, the race above the Middle BB points to the significance of the 62.8 Fibonacci retracement level.
Visible from the XRP/USD daily chart, prices are bouncing from the critical level, a potential ground for a retest of September highs of around $1.40.
Ripple Market Movers
The Ripple project presents three solutions. However, the adoption of the On-Demand Liquidity (ODL) is closely being tracked by XRP traders.
ODL allows for instant fund transfer using XRP enabled by the XRPL—an energy-efficient blockchain powered by Ripple and third-party validators. Ripple has a decentralization plan in place, ensuring that it won’t control more than 49 percent of all validators.
Ripple presently plans to upgrade the XRPL. Their plan, according to David Schwartz, the CTO, is to enable smart contracts. With this, they can launch DeFi without affecting the throughput or efficiency of the XRPL.
Towards that end, Ripple has announced a $250 million Creator Fund for developers to explore, among other innovations, NFTs, on the XRPL.
The team is convinced the future is tokenized and the XRPL the vehicle for developers to overcome the current pain points.
As they focus on NFTs, Ripple will introduce a clear set of standards for synchrony in their drive to deliver a seamless NFT experience.
Ripple Technical Analysis
XRP buyers are back in contention after the scare of late September.
As per the XRP technical analysis in the daily chart, buyers are finding their footing from a critical Fibonacci retracement level.
The reversal from the 62.8 percent Fibonacci level-or around $0.85—September 2018 highs—may turn out to be the foundation for another leg up, retesting $1.20.
This is further supported by confirmation of October 1 gains and the close above the psychological $1 level. Nonetheless, for the uptrend to be validated, buyers must reject further lower lows, sustaining prices above the dynamic support line as they angle for $1.20 and $1.40 in the immediate term.
Unexpected losses below $0.90—flashing with the lows October 1—may see XRP prices tumble back to $0.85 in a bear trend resumption of October 2021.
