Bitcoin by CCN: Yashu Gola
Ripple Labs is a big mover this Thursday, as the company saw its XRP token rise as much as 3-percent since the Asian session open.
The XRP-to-dollar exchange rate formed an intraday high towards $0.344 after spending an entire week in a red zone. The pair jumped on moderate volume with traders changing hands the same as they did in the previous sessions. Therefore, onlookers could not establish the latest XRP price move as a breakout. More likely, it was a bounce back which had more probability of fading away in the upcoming trading sessions.
Ripple as a company saw a mixed track record when it came to revising its interim market sentiments. Last week, Japan’s fifth-largest bank Resona discontinued using MoneyTap, a payments service that uses the Ripple blockchain, six months after an agreement. Around the same time, Weiss Ratings claimed that Ripple was in talks with Skype to integrate its XRP tipping bot in their instant messaging platform.
Another announcement that could have favored XRP came from Coinbase. The San Francisco-based exchange announced Wednesday that it was expanding its trading operations to eleven more regions, including Mexico, India, and Hong Kong. That would positively put XRP before more traders.
XRP’s current market capitalization is close to $14.3 billion, the third largest in the crypto asset index.
The XRP price downside has been capped by the 50-period moving average curve indicated in purple. A bounce back opens a decent long opportunity towards the 200-period moving average in blue above. We would adjust our interim upside target roughly towards $0.378, a level which has historically acted tough on bullish attempts. If the XRP price continues its upside momentum, good. If not, we would have placed a stop loss order around $0.320 to exit the market on a small loss.
The current XRP upside action is weak. It gives us plenty of reasons to open a short position towards the next potential downside target. First, we would wait for the XRP price to break below the 50-period MA. If it does, then a short towards $0.289 would seem ideal. We will anyway maintain a stop loss order just a margin above the 50-period MA to manage our risks.