Ripple Analysis: XRP Forecast, News & Trading Analysis
29th May 2019: Ripple Analysis
Ripple bears and bulls are engaged in a firm tug-of-war this Wednesday. As of writing, the bulls have barely edged out and taken the price to $0.451. Before today, Ripple has enjoyed six consecutive bullish days. So, what lies ahead for XRP and Ripple? Let’s take a look at the fundamental and technical analysis to make a proper judgment call.
Ripple Fundamental Analysis
The hottest news stories surrounding Ripple are as follows:
- Siam Commercial Bank hints at using XRP.
- MoneyNetint looking at using XRP for liquidity demands.
- Goldman Sachs veteran moves from Blockchain.com to Ripple.
Siam Commercial Bank to use XRP?
Siam Commercial Bank (SCB), Thailand’s largest and oldest commercial bank, recently hinted on Twitter that they might start using the XRP tokens soon. Someone asked SCB on Twitter, “Would you be using XRP?”
To this, the bank replied:
“We will be using Blockchain Technology for ripple, but as for XRP, you may have to wait for further announcement.”
SCB has already utilized Ripple technology and carried out a cross-border payments trial. During the trial, the bank completed a transaction, which would have usually taken two days, in under a minute.
MoneyNetint looking to use XRP for liquidity demands
UK-based provider MoneyNetint has hinted on using the XRP token for liquidity demands MoneyNetint had partnered up with Ripple on October 18, 2018, and leveraged their blockchain to:
- Simplify and reduce the FX conversion rates for their customers.
- Increase the speed of payments.
- Acquire low-cost cross border payments.
Avi Starodubsky, the Head of Business Development at MoneyNetint, said:
“We have established a great relationship with the team at Ripple from day one. With their extensive experience in the field, they understand the pain points of applying new technology to the traditional payments world and were responsive to our requests and needs.”
Raphael Golan, Business Development Director at MoneyNetint, stated his desire to use XRP while asserting that digital assets should be as simple as using credit cards. He said:
“We’re also seeing increased demand for instant payments and are looking forward to the day when using a digital asset such as XRP to source on-demand liquidity during transactions on RippleNet, will be as simple as using credit cards nowadays.”
Over the past 30 days, MoneyNetint has already facilitated more than 100 transactions across S.America and Europe.
Goldman Sachs veteran moves from Blockchain.com to Ripple
Breanne Madigan, a former Goldman Sachs executive, left Blockchain.com for Ripple. Before joining Blockchain.com, Madigan was the head of institutional wealth services at Goldman Sachs. During her time at the firm, Goldman Sachs had a record $1.49 trillion total assets in 2017. After 13 years with the company, she moved on to Blockchain.com where she was the head of institutional sales and strategy. Over there, her main job was to attract institutional investors.
Madigan has now moved on to Ripple, where she will continue her efforts in attracting more institutional investors. Madigan said:
“I am thrilled to confirm that I have joined Ripple to lead the Global Institutional Markets team. This is an exciting time to be joining the Ripple team, helping to foster mass adoption of digital assets and transforming global payments systems across the world.”
For our technical analysis, we will be using Trading View’s charts. We will be looking at the following price charts:
XRP/USD daily chart
- The daily XRP/USD price is currently trending in an upwards channel formation.
- The bulls need to negotiate with the $0.455 resistance line which has thwarted the bulls before on May 16th.
- The widening of the 20-day Bollinger jaw shows increased market volatility.
- The Elliot oscillator shows 16 straight bullish sessions.
- The relative strength index (RSI) indicator is trending around 67.25.
- The 200-day simple moving average (SMA 200) and SMA 50 curve have charted the golden cross pattern, which is a reliable bullish indicator.
- The upper curve of the Bollinger band caps off at $0.478.
XRP/USD weekly chart
- So far, this week has been very bullish for Ripple.
- Over the week, XRP has gone up from $0.407 to $0.455, charting an 11.8% increase in price.
- If the week remains bullish, then this will be the first bullish session in the Elliot oscillator, following 53 consecutive bearish sessions!
- The weekly price chart is currently dealing with resistance at $0.458.
XRP/USD monthly chart
- XRP’s monthly chart shows that the Ripple has had two consecutive bullish months in a row. Also, three out of the last five months have been bullish.
- Throughout May, Ripple has gone up from $0.32 to $0.454.
XRP/USD 4-hour chart
- The 4-hour price chart is trending above the green cloud of the Ichimoku indicator (20/60/120/30).
- In the early hours of this Wednesday, the price had a bearish breakout and broke through the support provided by the upwards trending line.
- The price fell further and found support at $0.433, from which it bounced right back up.
- The latest session broke past resistance at $0.449 and $0.444.
- The signal line was going to converge with the moving average convergence/divergence (MACD) line before it diverged away. This shows that bullish momentum was decreasing before the bulls rallied together and made a comeback.
XRP/USD 2-hour chart
- On May 28th, the 2-hour price was able to break past the resistance at $0.455. (Indicated by the vertical blue line).
- However, since the RSI indicator crept into the overbought zone, the bears immediately checked the price and pulled it back down.
- The bulls made another attempt to break past $0.455, after which the bears pulled the price back down to $0.425 (black rectangle).
- Since then, the bulls made a charge and have made another assault at the $0.455 line.
- The RSI indicator is currently in the neutral zone.
- The signal line is about to converge with the MACD line, indicating decreasing bearish momentum.
XRP/USD 1-hour chart
- The hourly XRP/USD price chart is trending above the green cloud of the Ichimoku indicator.
- The bulls failed at the $0.456 level and have found support at $0.452.
- The signal line is diverging away from the MACD line, indicating increasing bullish momentum.
- The bears had a stranglehold on the market towards the end of yesterday’s session and the beginning of today’s. This is also reflected in the fact that the Elliot wave managed to have two slightly bearish sessions amid a sea of bullish sessions.
- The bulls since then managed to rally together and bring the price back up.
Ripple Analysis of future behavior
As the daily price charting a golden cross pattern and the Bollinger band capping off at $0.478, a bullish rally can be expected. With Ripple being extremely active in the partnership front and more and more institutions looking to incorporate the XRP token into their ecosystem, Ripple may end up near the $1-level in the upcoming months. In the short-term, the bulls need to overcome strong resistance at $0.455.
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