The crypto market is still trending downwards after bears showed renewed strength yesterday. Today, XRP is down by about 3%, and from the charts, it could be headed lower. Yesterday, XRP (XRP) broke below key support at $0.449, and since then, it has been trading below this price for the last couple of hours. That’s an indicator that bears are still in control of the market. Unless there is a significant increase in volumes that pushes XRP above $0.468, then it could test new lows in the next 24 hours.
$0.397, looks like a high likelihood support today. This downside momentum is supported by a number of external market factors.
First, there is little momentum in the market at this point. Bitcoin (BTC) has been trading sideways for a while. Now that it has broken downwards below $6400, it is likely to continue pulling the rest of the market with it. The BTC chart indicates that it could drop to $6200 in the short-term, a factor that would add to the bearish momentum of XRP and the rest of the market.
On top of that, there isn’t any major XRP related announcement today, and there is none anticipated in the next 24-hours or so. This means that at this point, XRP’s price movements are directly correlated to the rest of the market, and the charts are showing bearish signals, with overall volumes still low.
Over and above the short-term price movements, XRP’s fundamentals are getting better by the day. For instance, the number of financial institutions using XRapid has increased since it went live. This is a signal to the growing acceptance of ripple as the best option for fast transactions in the financial system. As more financial institutions start using it, the intrinsic value of XRP will rise.
Another factor that supports XRP (XRP)’s long-term prospects is the improved regulations surrounding cryptocurrencies. Recently, Japan allowed the crypto market to self-regulate. This is a favorable move for cryptocurrencies, one that will aid in the adoption of cryptocurrencies in this country. Ripple already has an edge in this market, all thanks to SBI, which has a relation with ripple and XRP. Even in the U.S, where XRP is facing major regulatory uncertainty, things are looking up, after the DFS allowed Coinbase to offer custody for XRP and other digital currencies. Such moves could be indicative that chances of XRP being declared a security by the SEC are getting slim by the day, and it’s a bullish signal.
Even the long-term charts point to a scenario where XRP (XRP) could be headed for a major surge in value in the future. In the weekly charts, XRP has been trading along the long-term 21-day moving average, in a descending pattern. However, in the last 6 –weeks, XRP’s price drops have failed to cancel out the gains of the last bullish candle that saw XRP push to $0.80. This indicates that bulls are still strong in this market. This could be an indicator that XRP (XRP) is slowly losing bearish momentum. If bulls return to the market, XRP could be headed for a major upside break in the long-run.