Ripple price weekly analysis 6 June: A solid week of gains
Ripple has had a solid week although traders have been taking a cautious approach.
- Ripple has gained a solid 9% over the last seven days.
- Trading volumes are down, indicating caution in the market.
- Ripple's CEO says partnerships with major banks will come by 2019.
Ripple has had a solid week, gaining over 9%. Although, other than some increased activity yesterday, it has been a quiet week of trading.
Starting at about US$0.62 last Wednesday, XRP maintained a steady upward trajectory to reach $0.67 today, with a 3% gain recorded over the last 24 hours. While 24-hour trading volumes sat at around the US$320 million mark, other than for part of yesterday when they passed US$547 million, it has not been a busy week for traders, who perhaps have been spooked by the last couple of weeks of heavy losses.
The magic number for Ripple is US$0.70. Most analysts say this is the major bear rider XRP needs to break in order to push on to the sorts of levels we saw in January when it bounded up to US$3.77 for a short time. But those sorts of valuations are still quite some way away.
We did sneak over that level for a short time yesterday before dropping back to the high 60s.
The upward trend is behind CryptoGlobe saying that Ripple is currently in a bullish market, suggesting that, from their point of view, it's on the way up. They say both the 20-day and 50-day moving averages are trending upwards.
Ripple's CEO Brad Garlinghouse, told CNBC he believed that by the end of 2019 "dozens" of financial companies, including banks, would be using Ripple's technology to process payments. "I've publicly stated that by the end of this year I have every confidence that major banks will use XRapid as a liquidity tool," Garlinghouse told CNBC in an interview at the Money 20/20 Europe fintech conference in Amsterdam.
He also said bitcoin is too slow and expensive to use, which is why the tech his company has created will give them the edge in the long term.
In the medium term, FXStreet says that if XRP can stay above the U$0.65 level, then it will push towards and over the 200-day average.
The longer term view of Ripple remains unchanged from last week. The real test for Ripple will come over the coming months. If they can deliver on their promise of broad adoption as an exchange platform for the banking sector, then the platform will increase in value and, theoretically, result in increased coin values. That's why many analysts see XRP as a HODL proposition.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.
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