Ripple price weekly analysis: Signs of price stability
Although losing 22% of its value against bitcoin, Ripple could be showing encouraging signs of stability.
- 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.
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.
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 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.
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