Unlike most major cryptocurrencies that have been stagnating for at least the last seven days, Ripple is demonstrating stunning performance. As of yesterday, the coin grew 26% in a matter of only one week, with 10 percentage points acquired during a 24-hour period. As of today, it still performs better than the rest of the top-20 list. XRP tokens have appreciated somewhat 30% in a one-week retrospective.
After reaching its local minimum on October 5th, the cryptocurrency market is back to growth. It was, however, growing at a slower pace than previously, sometimes even demonstrating short-term falls. The performance of Ripple, therefore, looks even more promising. Trading Ripple, however, is not an easy task and can be tricky. The coin has witnessed its ups and downs in a limited period of time.
What can be expected from the XRP price action and how to trade the third largest cryptocurrency in the coming days?
Technical analysis
According to the Alligator technical analysis tool, Ripple is back to growth after a short-lived negative retracement. Falling as low as $0.23 yesterday, the coin is now traded at around $0.26.
ADX hints at the diminishing power of the positive trend and a probability of flat movement. According to the Stochastic Oscillator, the price action is approaching the overbought levels and thus can be expected to deteriorate. It should be noted, however, that sometimes the price can remain in the overbought zone for quite some time.
Fundamental factors
Ripple is not just another crypto created with a dream of replacing Bitcoin in mind. It does not postulate itself as “the next big thing”. According to the Bitcoin community, big banks are evil and the global financial industry as it is should be deconstructed. Ripple, on the contrary, tailors to the needs of huge financial institutions. 75 banks from all over the world already use Ripple in their day-to-day interactions. Should the network of active users demonstrate further expansion, the price of Ripple can also be expected to go north. Ripple may not be the anarchist’s dream (something Bitcoin was trying to become) but it can provide decent monetary results.
Some experts go as far as downgrading the future prospects of Bitcoin, giving the potential leadership to Ethereum or Ripple. Ripple is more stable than Bitcoin and can therefore be used as an alternative to fiat currencies. Ripple has appreciated 3,868% since the moment of its launch back in 2013. How much should the third largest cryptocurrency appreciate is yet to be seen.
