The Ripple price is on a tear. The coin–after months of consolidation and numerous complaints from traders of possible manipulative tactics employed by Ripple to keep prices low, exploded past three resistance levels on Nov 21. The XRP price is now at $0.45, and at a 16-month high as the coin awakes.
There are no specific fundamentals that jolted XRP bulls. The “whats” are mostly speculation with no substance. However, what’s clear is that XRP is probably in the very early stage of a bull run at the back of improving blockchain fundamentals and laws in the United States.
A common theme from cryptocurrency circles is that XRP and altcoins are rallying because Bitcoin is in a bull market. Flimsy, it may be through. Nonetheless, the relation between Bitcoin and altcoins is inverse.
Given the metamorphosis of Bitcoin into a store of value asset, when there is economic turbulence, it rallies at the expense of altcoins. There is evidence to back this. When Bitcoin soared to over $18,000 in the past week, XRP and other altcoins outside of LTC were flat-lining with single-digit gains.
Therefore, XRP’s gains may also be because of a proposal by the United States Office of the Comptroller of the Currency (OCC) that bars banks from restricting legal industries that may include cryptocurrencies. It must be noted that OCC has also allowed national banks and approved savings cooperatives to custody coins.
Ripple Price Analysis
The Ripple price is up over 70 percent versus the greenback, adding roughly 45 percent against both the BTC and ETH in the last week of trading.
From the weekly chart, the token has closed above Feb 2020 highs and is a few cents away from retesting the June 2019 high of around $0.52.
Technically, buyers are in control. The resumption of the trend is marked by trading volume swells at par with the climactic sell-off of mid-March 2020 and the fake breakout of early May 2019. Volumes are relatively lower than those registered in September 2018 when prices suddenly soared to $0.81.
Judging from the above, it is possible for the Ripple price to break above $0.50 with subsequent targets at $0.8—or Sep 2018 highs, ahead of DeFi via Flare. The snapshot date is on Dec 12.
Chart courtesy of Trading View
Disclaimer: Views expressed are those of the author and is not investment advice. Do your research.
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