While the financial community watches in dismay as Coronavirus wreaks havoc, the dismantling of the stock market, some quarters speculated, could bring good tides to Bitcoin and altcoins.
The Crypto Slump Continues
The recovery of Bitcoin, as the most valuable and most watched digital asset, would spill over to altcoins and that would instead turn the tides, and spur another wave of demand.
It appears that isn’t the case. Bitcoin is down and so is XRP, the native coin of the XRPL. Surprisingly, the slump is behind a wave of bullish news.
Top of the table is Ripple’s idea of pushing partnerships and striking good deals especially in Africa and APAC.
Partnership in South Korea
So far, their eyes are set on South Korea and specifically Azimo. The money transfer firm now has a deal with Ripple that will see the integration of On Demand Liquidity, ODL, an option that is speedy and cheap thanks to the utilization of XRP. XRP, previous pilot tests reveal, slashes the costs of operation, an edge for companies.
Aside from that, four firms from South Korea including WireBarley are also the latest members of the RippleNet.
Although the option doesn’t use XRP, there is option for upgrading and later implementation of XRP in the latest version of xCurrent, which is part of RippleNet.
RippleNet is used by over 300 banks including Santander.
XRP/USD Price Analysis
In the daily chart, bears reign supreme and digital assets are deep in red. XRP price is down 18% in the last trading week, shedding roughly 2% in the last day.
Although the trend is bullish and the uptrend still valid, it depends on how prices will react at the 71.8% Fibonacci retracement level of Dec 2019-Feb 2020 trade range.
First level support is at 21 cents. Since the undervaluation of Feb 27 wasn’t corrected and prices are trending within Feb 26 bear candlestick with low trading volumes, bears are in control from an effort versus result point of view.
Should prices sink below 21 cents, the 71.8% Fibonacci retracement level, XRP could sink to Dec 2019 lows of 17 cents.
However, if there is a correction and bulls of Feb 27 flow back in a bull trend resumption, buys will be valid if XRP soar above 25 cents and ideally above Feb 26 highs preferably with high trading volumes.
In that case, bulls should aim at 30 cents and even 40 cents in the medium term.
Chart courtesy of Trading View-Bitfinex
Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.