Ripple is downtrending mid-term as we are heading into mid February, as Dmitriy Gurkovskiy, Chief Analyst at RoboForex, says.
It was already bearish a week ago, but then there was some hope for stabilization. Now we can see the sellers are still strong, as Ripple bounced off $1.01 and is dropping towards $0.75. Ripple hit its record high on Jan 4, 2018, at $3.30, and is now way far from it, being reduced by 300% and still having potential to go down further, if not by too much.
The long term trend is, however, ascending, and Ripple may start recovering quite quickly if there is a reason for it. If this is the case, the immediate targets would be $1.21 (23.60% Fibo) and $1.61 (38.20% Fibo). However, these targets can become realistic only once Ripple is able to stay above $1.01. Bitcoin recovery may also boost Ripple correction, while some solid fundamentals can bring its action, too, although how much it will influence the digital coin, still remains to be seen.
Ripple supporting xCurrent may well prove to act as such solid fundamentals, as xCurrent may partner Chinese online market, and the potential of such partnership is really great. Ripple offers to back and speed up transactions by processing sell and buy orders, and can do this even for those transactions that can’t be serviced by traditional banks.
For online stores attracting more and more customers with a good number of bonuses and promos, the question of how to accept overseas payments has been an important and a difficult one for long. Ripple can well solve this issue, and this is exactly what we said before:the cryptocurrency market may disappear one day, but new technologies will be here to stay.
Ripple will not, of course, be servicing all transactions in Chinese online market alone, there being much more links in the chain. However, the mere fact of integration into this system is already a great achievement for the company and for the technology alike. The reports say overseas transaction turnover amounted to $1.3T in 2017, and it can grow by 10% in 2018. This is not yet priced into Ripple, but it’s still likely to be.
Disclaimer: Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.