Ripple’s XRP was among the best performing cryptocurrencies in September. But the bullish sentiment hasn’t sustained well this month.
The XRP-to-USD pair has recorded a 24 percent monthly loss as October heads to a close, falling from 0.5831-fiat to 0.4400-fiat. The coin got sold off to the tune of over $7 billion, despite being surrounded with strong fundamentals all month long. That includes the launch of the xRapid system, new partnerships with Viamericas, Moneytenint, and National Bank of Kuwait, and the release of Ripple’s Q3 report that showed XRP sales doubled compared to its Q2 output.
The early-October signs were negative overall, as XRP was inside a downside correction wave from the higher highs established at $0.79080. No fundamental factors attributed to the bearish bias. On the technical front, however, the XRP market saw price being pumped during the mid-September session as traders established their long targets on higher highs – again on the promise of strong fundamentals around the market. It included the xRapid launch and the strategical and infrastructural developments reported on October 1 during the Ripple’s Swell conference.
The XRP price dropped anyway, forming lower lows towards $0.37924 after day traders started exiting their long targets on higher profits.
The sentiments began improving only after the 11th, as XRP recorded one of the fastest price recoveries on daily crypto charts, rising 16 percent within a seven-hour trading window. The volume around the same time surged from the $400 million to $900 million range marks. Analysts believed that while the impact of the xRapid launch and Swell conference was not immediately visible on the XRP market, its long-term relevance assisted the coin hugely.
The XRP/USD pair received another fundamental push during the mid-October when traders started swapping their Tether tokens for other crypto assets. The period saw inorganic surges across the crypto market, with every top coin including Bitcoin, Ethereum and Bitcoin Cash marking volatile upside actions. XRP surged 10 percent on the day, setting new intraday tops at 0.52438-fiat on BitFinex.
The price later corrected to the downside and is continuing on a stable sideways trend ever since amidst low volume. On October 29, the XRP/USD pair dropped towards 0.43491-fiat in response to a market-wide drop. The price action has slowed down once again, but the news of Ripple’s latest new partnerships are sustaining the coin’s bullish bias in the long term.
The XRP/USD pair is now being supported by its 100-hour simple moving average to the downside, while its upside looks pretty capped by the 200-hour simple moving average. In near-term, the price is looking to set a breakdown action by breaking below the 50% Fibonacci level at 0.43889-fiat, bringing a short opportunity towards the next in range at 0.39525-fiat. To the upside, a breakout action can come into effect after the XRP/USD breaks above 0.48253 to set long targets on 0.62379-fiat.
The RSI momentum indicator is trending lower into the oversold region, while the Stochastic Oscillator is trending inside a neutral area. Overall, the bias looks neutral on daily charts.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 2:35 PM UTC