Ripple (XPR) is again gaining volatility. After yesterday’s pause and bounce-off, the sellers are hunting for Ripple today.
XRP/USD is trading at $0.5115 Thursday, which is 5% lower than the previous day. On H1, there is a bullish trendline with the support at $0.5050. Still, while Ripple is above $0.5100, the chance for the current channel breakout are quite low, Dmitriy Gurkovskiy, Chief Analyst at RoboForex says.
A string support created by the traders before is at $0.4850; this helped the digital coin to rise to $0.5000, and opened a way to $0.5100. The market was even ready to reach $0.5500, but then the fundamentals and news came in.
The MACD on D1 is in the negative area, going along the trendline and still issuing a sell signal. The Stochastic is, conversely, in the positive area, but is going lower, issuing a sell signal, too. Currently, the support for XPRUSD is around $0.5100, while the strategic resistance is near $0.5550.
Fundamentally speaking, Ripple founders said they were investing $25M into Blockchain Capital Parallel IV, LP, a fund that will raise crypto money and invest it into blockchain startups. The idea is not bad as such, but Ripple will have to support this fund financially before it is able to operate independently.
Ripple is still controlling 60B out of 100B coins, which makes the idea to raise crypto money using their own funds quite viable. Ripple blockchain based projects have already been used in financial area for long; in particular, there was news on Ripple partnership with Western Union and MoneyGram.
Ripple has no clear idea of what are those startups promoted by Blockchain Capital. The latter, meanwhile, says Uber is a good example, with the app being not the best out there initially, but then becoming one of the most easy to use and convenient. Other areas may include healthcare and project management that could benefit from blockchain or distributed register.
All these fundamentals gave massive support to XPR today.
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.