LIVE NOW

Ripple price weekly analysis: Signs of price stability

Posted: 17 February 2018 3:04 pm News

Ripple stability - ITIAlthough losing 22% of its value against bitcoin, Ripple could be showing encouraging signs of stability.

Key takeaways

  • Ripple stabilises against the US$ late in the week
  • Ripple price slides in value against bitcoin
  • Increasing confidence for Ripple Labs if stability continues

The stable end to this week’s trading will have the market and Ripple Labs up and about. As has been noted in previous weekly analyses, price stability is essential for successful roll out of xRapid. The last 90 days have been extremely volatile for the price of Ripple (XRP).

That has placed question marks over whether xRapid is suitable for cross-border payments between banks. But this week's price stability makes putting forward the business case for xRapid more simple. Ripple Labs will be looking forward to XRP price stability becoming a mainstay.

While XRP has gained some stability against the US dollar, XRP has lost 22% of its value against bitcoin from its week-high. With Lightning Network still gathering pace on Mainnet, XRP will become increasingly challenged as a market leader in cross-border payments.

Price movements

XRP had an early week breakaway from the peloton, moving to US$1.30 shortly into the trading week, according to pricing information provided by CoinMarketCap. The high was short lived and a dip in trading volumes seemed to accompany a serious decline in price set in.

XRP hit a week-low of US$0.93 but quickly rebounded with a surge in trading volume. Cooling market concerns, the price of XRP began to show some signs of stability. During midweek trading XRP was priced between US$1 and US$1.10.

That process strengthened as the week rounded out to its close. From Thursday XRP was traded at tight margins between US$1.17 and US$1.11 up to the time of writing 17 February 2018.

Market capitalisation

XRP market cap showed a strong market valuation at US$40.61 billion getting the week underway. That figure was to peak soon after, showing a solid US$10 billion increase to claim a week-high of US$50.73 billion.

The week was not without its trouble for XRP in terms of market cap which surprised the market with a dip to as low as US$36.52 billion.

In line with price differentials, XRP market cap has grown while fostering a positive market sentiment. Trading in a stable range, XRP market cap was consistently priced between US$45 billion and US$43 billion to close out the week on a positive note buoying market confidence.

Trading volume

Trading volume in XRP showed significant levels of volatility in the early stages of the trading week. Starting out the week at US$2.1 billion XRP trading volume more than doubled itself reaching a week-high just shy of US$5 billion.

As the market cooled off and profits had been taken from the week-high, trading volumes in XRP tapered off reaching well below US$1 billion, slowing to a trickle at US$754 million by midweek trading.

Demand for XRP remained subdued throughout the remainder of the week. Despite a slight rise as the weekend approached, trading volume dipped further approaching US$500 million as the week was drawing to a close.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site