XRP Price Analysis – February 21

  • The XRP price is trading at $0.33 after testing the $0.34 resistance level.
  • The crypto will rise if more buyers come in at the $0.34 price level and the crypto's price is sustained above the EMAs.

Ripple, XRPUSDXRP Chart by Trading View

XRPUSD Medium-term Trend: Bullish

  • Resistance Levels: $0.56, $0.58, $ 0.60
  • Support Levels: $0.32, $0.30, $0.28

Yesterday, February 20, the XRP price was in a bullish trend. The crypto's price reached a high of $0.34 and was resisted. The crypto's price is facing resistance at the $0.34 price level. On January 10, the bears broke the $0.34 price level which was then a support level but today it is a resistance level. The bulls have not been able to break the $0.34 resistance level since January 10.

Nevertheless, the bullish trend may have been terminated because of the broken trend line. We will confirm this termination when another candlestick closed on the opposite of the trend line.  The crypto's price is above the 12-day EMA and the 26-day EMA which indicates that the price is the bullish trend zone and most likely to rise.

On the upside, the crypto will rise if more buyers come in at the $0.34 price level and the crypto's price is sustained above the EMAs. Then the bulls should be able to overcome the resistance level. Meanwhile, the stochastic indicator is in the overbought region and below the 80 % range which indicates that the XRP price is in a  bearish momentum and a sell signal.

 XRPUSD Short-term Trend: Bullish

Ripple, XRPUSDXRP Chart by Trading View

On the 4-hour chart,  the XRP price is in a bullish trend. Yesterday, February 20, the XRP price was ranging above the $0.33 price level. The bears have broken the 12-day EMA and price is approaching the 26-day EMA. Nevertheless, if the bears break below the EMAs, the crypto will resume its downward trend.

Meanwhile, the stochastic indicator is out of the overbought region but below the 40 % range which indicates that the XRP price is in a  bearish momentum and a sell signal.


The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.         

Will Litecoin Become Obsolete Due to Bitcoin's Lightning Network?

Litecoin (LTC), a proof-of-work (PoW)-based peer-to-peer (P2P) cryptocurrency which uses the Scrypt mining algorithm, instead of Bitcoin’s (BTC) SHA-256 algorithm, has been criticized for not having a legitimate use case.

Earlier this month, Michael Novogratz, the founder of Galaxy Digital, a full-service digital asset merchant bank, argued that LTC’s recent price surge did not make sense. Novogratz, a former partner at Goldman Sachs, had compared the market capitalization of BTC to that of LTC and noted that LTC was overvalued as he thought its market cap was unjustifiably high, At the time, it stood at about 6% of BTC’s overall market share.

LTC, A “Glorified Testnet” For BTC?

According to Novogratz, the Litecoin network is only “a glorified testnet for BTC” and it does not have a unique value proposition. However, a Redditor with username iDONATELLO posted a detailed explanation on why he believes Litecoin is “useful.” The post claims Litecoin is “the second most secure [cryptocurrency platform] behind Bitcoin.”

The Redditor believes that “high levels of mining decentralization” and Litecoin’s use of the Scrypt algorithm are “the ultimate reason” why the LTC network is able to maintain a very high level of security. iDONATELLO wrote:

[By using] a different algorithm than Bitcoin (SHA256), [the Litecoin network effectively] prevents Bitcoin miners from attacking the Litecoin [blockchain.] Litecoin [also] has the most hash power [when compared to all] other Scrypt coins. This makes it very very difficult to attack Litecoin. [The same argument] cannot be [made] for other Proof of Work coins, [with the exception] of Bitcoin.

$99 Million LTC Transaction Settled In Minutes, For Only $0.40

In addition to providing robust security, LTC transactions can be settled fairly quickly and also in a cost-effective manner. The user noted that “the average transaction fees for a Litecoin transaction is 4 cents and about 2.5 - 5 minutes for a transaction to be considered confirmed.”

Notably, iDONATELLO pointed out that an LTC transaction worth around $99 million was conducted and its associated transaction fee was around $0.40, while its confirmation time was approximately 2.5 minutes.

The Redditor also wrote that Litecoin’s integration of the Lightning Network (LN) protocol could potentially lead to even lower transaction fees and faster transaction settlement times. He added that “much of the criticism of Litecoin is [centered around] it becoming useless since Bitcoin will use LN to increase speed and lower fees.”

However, this argument may not be valid because it doesn’t take into consideration that Litecoin may also “benefit from LN.” According to iDONATELLO:

Naturally, Litecoin is the cheapest and fastest on ramp to Lightning Network. What's really cool about the LN though is the compatibility with the two coins. With atomic swaps, you can swap Bitcoin into Litecoin and make payments much quicker than with Bitcoin alone.

“Bitcoin Is Your Savings Account, Litecoin Is Your Spending Account”

He continued:

The way I see it, Bitcoin is your savings account and Litecoin is a spending account. This is not to say Litecoin is not a good store of value, but Bitcoin is more scarce and more secure, making it a stronger store of value to Litecoin, which is more suited for making payments.

The user further noted that both Bitcoin and Litecoin benefit from the Lindy Effect. He explained:

The Lindy Effect is a theory that the future life expectancy of some non-perishable things like a technology or an idea is proportional to their current age, so that every additional period of survival implies a longer remaining life expectancy.

Lindy Effect And Network Effect

Per the Redditor:

[The Lindy Effect] applies to both Litecoin and Bitcoin. They are the two oldest coins, genesis blocks created in 2011 and 2009 respectively. Both have survived the test of time, creating more confidence that [their networks] will continue to survive into the future.

Going on to mention what network effect means, the Reddit user quoted Wikipedia as follows: 

A network effect (also called network externality or demand-side economies of scale) is the effect described in economics and business that an additional user of a good or service has on the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it.

“What this means,” iDONATELLO wrote, is “as the user base/community [of a decentralized cryptocurrency platform] continues to grow, it becomes easier for it grow further. Litecoin has grown a massive community over its 7 and half year existence, [remaining] a top crypto since the beginning, making its future growth easier” and sustainable.