Price Analysis: Ripple Experiences 14% Price Hike Over 7 Trading Days

Ripple has enjoyed a price hike of 4.4% over the past 24 hours as the cryptocurrency giant  currently is exchanging hands at $0.5118. XRP has experienced a price increase of 13.88% over the past 7 days, this comes after a 30 day period of declining prices of up to 6.56%.

Ripple was founded by a company called Ripple Labs in 2012 as they launched the Ripple blockchain. The Ripple blockchain is said to be superior to Bitcoin in the sense that it can process up to 1,500 transactions per second. This is outshines the meger 7 transactions per second that Bitcoin can handle.

Ripple specialised in numerous tools and applications for banks and financial instructions to improve their efficiency with their day to day operations, therefore leading to faster banking systems. However, the current 1,500 transactions per second is still considerable lower than the 25,000 transactions per second that VISA can currently handle.

Ripple can boast about securing over 100 partnerships with major financial banks and institutions and is currently one of the highest traded currencies in Japan.

Ripple is currently ranked in 3rd position in terms of market cap value across the entire industry with a total market cap value of $20.09 billion. This is a significant $16.87 billion lower than the market cap high of $36.96 billion seen on April 25th 2018.

Let us continue to analyse price action over long period for Ripple.

Price Analysis

XRP/USD – LONG TERM – DAILY CHART

xrp price chart 18 july 2018

Analysing the market over the long term, we can see that the market had experienced a serious bullish price run when price action started from a low of $0.16 in December 2017 and rose to an all time high price of $3.53 in January. This was a price increase of over 1900% from low to high.

After placing this high, the market continued to fall as volume decreased, until it found support just below the .886 Fibonacci Retracement level priced at $0.5410. This is a Fibonacci Retracement measured from the entire bullish run outlined above.

We can see that for the majority of the year the market has largely traded below the 100 day moving average (black line) and it is currently re-approaching the 100 day moving average in another attempt to break above it.

Let us continue to analyse price action over the shorter period a little closer to highlight any potential support and resistance zones.

XRP/USD – SHORT TERM – DAILY CHART

xrp price chart 18 july 2018 2

Analysing the market with the advantage of a closer perspective we can see that price action had experienced another bullish run during April 2018 when trading started from a low of $0.45 and extended to a high of $0.99. This was a price increase of 118% over the brief period.

The market went on to fall during May and June and eventually had retraced 100% of the bullish run mentioned above. In fact, price action dipped further below the starting price of the bullish run seen in April. We can see that it reversed at a 1.618 Fibonacci Extension level priced at $0.4346. This is a Fibonacci Extension measured from the initial bearish leg seen in May starting from a high of $0.94 on the 5th of May to a low of $0.62 on the 11th of May. This 1.618 Fibonacci Extension has provided ample support during the month of June and July.

The recent bullish momentum witnessed over the past trading week within the market has pushed price action into an area of resistance marked by the short term bearish .382 Fibonacci Retracement level. This bearish Fibonacci Retracement is measured from the high of $0.70 seen on the 4th of June to the low of $0.41 experienced on the 29th of June.

If the bullish momentum can push the market above the .382 Fibonacci Retracement then near term resistance is expected immediately at the .50 Fibonacci Retracement level priced at $0.56. If the bullish momentum can continue even higher, further resistance is expected at the short term .618 Fibonacci Retracement priced at $0.59. It is important to note that this resistance level is bolstered by the 100 day moving average and thus the resistance at this level is expected to be significant.

Alternatively, if the .382 Fibonacci Retracement proves to be overpowering and the market rolls over then near term support can be expected at the April low day close price around the $0.47 handle. Further support below this level is expected at April’s low at $0.45 followed by the 1.618 Fibonacci Extension priced at $0.4346.

The technical indicators within the market are currently favouring the bulls within the market. The RSI indicators has recently exploded above the 50 handle and headed straight towards overbought conditions at the 80 handle. This indicates that the bullish momentum is predominantly in control.

Let us continue to very briefly analyse Ripple’s performance relative to Bitcoin.

XRP/BTC – SHORT TERM – DAILY CHART

xrp price chart 18 july 2018 3

Analysing XRP Against BTC we can see that Ripple had experienced a bullish run during April when price action rose from a low of 6890 SATS and extended to a high of 11,000 SATS. This was a price increase of 55% from low to high.

We can see that after placing this high,  the market went on to fall throughout May and June, mostly finding support above the .886 Fibonacci Retracement priced at 7464 SATS. This is a Fibonacci Retracement measured from the entire bullish run highlighted above.

As July continued to trade the market continued to fall and retraced 100% of the previous bullish run mentioned above. Price action has currently returned to the lows seen during April priced at 6890 SATS. Major support is expected in this area.

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