XRP Looking Like Recovery, But Volume Still Lacking - Price Analysis

  • Short term: chance of reversal soon
  • Long term: trend very much down until strong indications otherwise

XRP seems to be carving out a bottom within historical support, with some strength growing on the indicators. But buy volume remains almost completely absent, negating any confidence we may have in such a thesis.

Looking at the 12-hour XRP/BTC chart, we see strength showing up. A brutal dump on Wednesday (August 14 - obviously because of news of a class-action lawsuit against Ripple) was quickly bought up before it could be registered on the indicators. The RSI looks like it might continue upward after extreme oversold conditions, and the histogram is flattening out nicely at time of writing. MACD is inching ever closer to the centerline.

A bit of strengthXRP chart by TradingView

The main problem here is volume: there is very little buy volume, with little indication of a change in that trend. Tepid indicators of strength are one thing, but more buyers are needed here.

Growth and a falling wedge?XRP chart by TradingView

Looking at a longer timeframe, 3-day, we see this picture repeated. Strength is slowly growing on the RSI, diverging bullishly from price. Volume has fallen over time, looking like a consolidation. A vaguely formed falling wedge makes us hopeful of an eventual breakout.

A lone uptickXRP chart by TradingView

On an expanded MACD chart (still 3-day), we see a promising tick up on the latest histogram bar. Some decent movement here could break the histogram consolidation pattern that has been forming, and give the MACD a much needed boost toward the centerline and positive territory.

On the USD side, XRP had been performing modestly - not well - before the news-driven selloff. The leading altcoin is now trading in a deep and critical support zone at around $0.28-25. XRP is now considerably oversold on the daily chart, and we can expect some relief from this after the news has had time to settle.

Oversold bound to bounce backXRP chart by TradingView

In sum, XRP’s decent response to the bad news, combined with its steady growth on the indicators, indicates that a bottom is probably being carved out on both charts. But we are nowhere ready to declare uptrends on either short or long term trends. For fundamental believers, however, now is probably the time to buy at discounted prices.

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

 

Weekly Newsletter

National Bank of Egypt Joining RippleNet for Remittance

Michael LaVere
  • Egypt's largest bank National Bank of Egypt (NBE) has joined Ripple's payment network RippleNet.
  • NBE is planning to use RippleNet as a portal for improved remittance.

Egypt’s largest bank by total assets, the National Bank of Egypt (NBE), is joining Ripple’s blockchain-powered payment network RippleNet for remittance services. 

According to a report by local news outlet Youm7 on Tuesday, NBE has signed a co-operation agreement with Ripple in order to gain access to “more effective channels” for remittance. 

NBE Chairman Hisham Okasha said the agreement would add a “new and important tributary” for receiving remittances from correspondents via RippleNet, and claimed the partnership to be a “first of its kind” among Egyptian banks. 

Vice Chairman of the Board Dalia El-Baz told news organizations that RippleNet’s network now contains more than 300 banks and financial institutions spread across the globe, with the number of member organizations expected to grow exponentially in the coming years. The NBE executive also said that RippleNet would allow the bank to better address the needs of clients.

Figures from the World Bank show Egypt to be in the top five remittance recipient countries, with migrants sending more than $29 billion in 2018 alone. 

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