Ripple price weekly analysis 23 May: Much ado about almost nothing as price holds
A busy week of XRP trading leaves us almost back where we started.
- XRP price has fallen slightly this week on the back of a big fall today.
- The near-term price will depend on whether the price can hold above US$0.64.
- Optimism remains for US$10 by the end of this year.
When I first looked at the charts for Ripple's (XRP) movement for the week, I thought it had been a terrible week. But, a closer look reveals that despite some ups and downs, it's been remarkably steady. And while the price has fallen slightly since last Wednesday, from US$0.68 to US$0.64, that's a reasonable outcome given the way other coins have fared this week.
The price did peak at a little over US$0.71 late last week as trading volumes rose to US$488 million in a 24-hour period but they've held at around US$250 million in a 24-hour period since then.
The big question is whether today's 6% fall is part of a longer-term dip or just one of the usual troughs that happen when you look only at short-term trends.
Looking at the last few months, and excluding the wild ride of last January, Ripple seems to follow a pattern of a rise, followed by a slow dip over about eight weeks, followed by a rise and then another slow fall. If that pattern holds true, then we're about halfway through the dip and there will be a recovery.
That seems to hold with the NewsBTC view that there's resistance sustaining a price above US$0.68 – as we see the price fall whenever it reaches levels in excess of that value – but support at US$0.66. That narrow band is where the price seems to settle much of the time.
FXStreet says that if the price dips below that US$0.66 floor, then a price in the mid US$0.50s looks like the next likely support level.
As we've said before, Ripple's purpose is to act as a vehicle for fiat currency exchange and they have been making a lot of deals to become a part of that market. That's leading some analysts to conclude that the current market valuation is very low.
That may be true but, as anyone who has sold property knows, the market sets the price – not our expectations. So, whether the current price, which seems stuck at under US$0.70, is the long-term value or if US$10 by the end of the year is really where we're heading with XRP remains to be seen.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.
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