Time to go Long Ripple’s XRP?

Ripple's digital currency XRP technical analysis for 31st October 2018. XRP trades at the bottom of a range and many may see this as an attractive entry point. We analyse whether this is a good buying opportunity.

XRP Priced Against Bitcoin
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Ripple’s digital currency XRP is now trading near the bottom of the range it has been forming since its appreciation on the news of 0x Project listing to Coinbase Pro. XRP possibly appreciated on the official announcement of the listing due to many investors believing XRP is next in line to be listed on Coinbase Pro.

XRP experienced a drop on Monday in line with the rest of the market and now trades near the bottom of the range it has formed over the past two weeks. Whether this is a good position to enter depends on which way the range is going to break out. If price were to stay in the range, this would be an attractive position, but this trade runs the risk of price breaking out in the wrong direction.

XRP – Daily Chart
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The direction that XRP breaks out of the range is likely to depend a lot on the market leader Bitcoin. The recent drop which took place on Monday resulted in altcoins losing further value in comparison to Bitcoin. Bitcoins percentage of the cryptocurrency market cap is now over 54%, and its movements are likely to have a significant impact on those altcoins.

Bitcoin Daily

Ripple’s XRP has lost significant amounts of value in relation to Bitcoin this year. Priced around 180,000 satoshis (0.00180000 Bitcoin) in January, XRP is now priced around 70,000 satoshis.

XRP Priced Against Bitcoin

Key Takeaways:

  • XRP trades near the bottom of a range it has formed for the past two weeks which some may see as an attractive entry point. Whether it is an attractive entry point depends on how XRP exits the range
  • With Bitcoin representing over 54% of the cryptocurrency market cap, its movements are likely to determine how XRP will exit the range
  • XRP has lost significant value compared to Bitcoin this year moving from 180,000 satoshis to 70,000 satoshis

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