In the last 6-hours, cryptocurrencies have been in the green, and this has created an air of optimism amongst investors. However, the charts are painting a different story all together. Looking at the XRP charts, it is clear that it has failed to break above key resistance at $0.336. After pushing to this price level, XRP (XRP) has been on a downtrend for the past 4-hours. This means that it could have lost the momentum to rise above resistance, and enter a short-term bull trend.
The possibility of XRP (XRP) losing momentum at this level is also supported by the fact that it Bitcoin (BTC) is headed for a breakout. It is forming a funnel between the 200-day moving average on the upper side and the 21-day moving average on the lower side. With volumes still relatively low, Bitcoin (BTC) has a higher chance of breaking out downwards, and pull the rest of the market with it. This could increase the bearish momentum for XRP (XRP).
However, even with such a possibility, XRP remains long-term bullish. So much is happening in the banking industry that will play a role in driving up XRP. The number of financial institutions using XRapid is on the rise. With institutions like Santander and banks in the Middle East already using XRapid, momentum will continue to grow.
The best part is that all the financial institutions that are using XRapid are taking it up positively. For instance, Mercuryfx, one the first companies to use XRapid, has twitted that its transactions in XRapid are growing. In their tweet, Mercuryfx has stated that they have made their largest payment using XRP. The payment is for 3,521 pounds and was sent from the U.K to Mexico in just a few seconds. As more institutions embrace this efficiency that comes with XRapid, its usage will grow.
This growth will further be fast-tracked by more friendly regulations in the U.S. The biggest factor holding back the adoption of XRapid and XRP is the heavy cloud of uncertainty in the U.S, especially with regards to the status of XRP. The moment it is spelt out clearly that XRP is not a security, its value in the market will grow exponentially. On top of that, some lawmakers are already calling for crypto specific laws, which means that at some point, regulatory clarity will come. If this clarity comes in 2019, XRP (XRP) will emerge as one of the biggest gainers this year. That’s because, it already has established relations with banks, and has a solution that can free up capital in the banking industry.
However, before these regulations come in place, XRP is likely to continue trading up and down with Bitcoin (BTC)’s price movements. If Bitcoin (BTC) gains momentum and turns bullish, XRP (XRP) like every other altcoin will most likely to follow. Still a good reason to believe in XRP since in a bull market, XRP and all altcoins will most likely grow at a faster rate than Bitcoin (BTC).