Ripple (XRP) Technical Analysis: Coinbase Pro Adds XRP But Traders Still Convalescing
After more than a year of waiting Ripple fans have finally had their prayers answered today, as Coinbase Pro announces new support for XRP. Trading XRP on the platform is expected to go fully live once an initial 12hr period has passed to ensure that there is adequate liquidity to support all orders.
It has also been announced that buying and selling XRP tokens on the platform will only be made available to Australian, UK, European and Singaporean traders, while the U.S Ripple lawsuit remains in Court. The undecided legal debate as to whether XRP is a traded security or not, has meant that U.S investors are still barred from trading the #3 crypto asset.
The new announcement has not nearly sparked as much excitement as many traders would have expected, given the explosive rally that followed the false rumours last year. Trading volume has crept up by $182.7 Million (18.3%) in the last 24hrs but Ethereum is still holding on to its position at #2, with a $1 Billion lead in market capital. At the moment XRP is leading today’s slow market recovery with a 6.20% gain against the US dollar, but bullish traders are already showing weakness at the $0.34 resistance.
On the 1D XRP/USD chart its clear that the asset is struggling to break through a key area between the the $0.343 and $0.0358 levels (red shaded area). This particular zone has been a strong resistance and support for XRP over the last 3 months. If buyers are able to break above this level and we see candles closing higher that $0.35, then it is likely that XRP will be in a good position to continue bullish and potentially go on to test the $0.37 and $0.40 levels in the short-term.
If bears are able to defend this key zone over the rest of this week and keep XRP below $0.34 however, then we could see buying confidence depart from this asset and the price action crash back down to $0.30 or even lower supports.
Looking at a number of 1D chart indicators, there are a handful of mixed signals that make it difficult to predict XRP’s intra-week movements.
-On the 1D Ichimoku indicator candles are beginning to enter into the resisting kumo, supported by a bullish T/K crossover
-There is a bullish convergence between the 9 and 20 EMA lines
-The 12MA on the MACD indicator is above the 26MA, with both moving averages above the signal line
-Aroon Up line has bearishly diverged below the Aroon Down line
-Parabolic SAR indicator dots are holding above the price action
-Buying momentum is starting to decrease on the RSI
For now it seems too early to predict which way XRP will go, and whether traders are confident enough to buy back into the current market or not. If the crypto market can stabilize after Sunday’s heavy sell-off then we may well see bullish XRP traders start to reemerge, but if Bitcoin starts to slide again then it is likely that investors will retreat back into pegged-value assets and continue riding out the storm.
Ripple (XRP) Price Targets
All ROIs are calculated from the asset’s current value at $0.32470.
PT1: $0.0343 (5.64%)
PT2: $0.0358 (10.26%)
Key Supports: $0.30 (-7.61%)