XRP Price Analysis–Oct 8
Chris Larsen, one of the founders of Ripple, wants to see XRP and RTXP evolving. That evolution will see XRP drawing value as it will find several user cases making it an indispensable asset in the cross-border payment.
All in all, they are working towards that after launching xRapid and rumors of merging all of their main products—including xCurrent and xVia into one wholesome solution called Convergence. That is yet to be confirmed but could help reverse losses and drive prices back to $1 and even $2 as buyers aim at reversing 2018 losses.
Chris Larsen comments:
Latest Ripple News
As long as XRP prices are suppressed, an undervaluation divergence is inevitable. And it’s not hard to see why. From a fundamental perspective, Ripple is stepping up launches, announcement and forging partnerships with key players. A case in point is the recent announcement by Brad Garlinghouse that xRapid was now commercially available and three companies would be trying out the solution improving cross-border fund transfer efficiency between Europe, the US, and Mexico.
The new product, xRapid, leverage on XRP as an on-demand liquidity tool and with it there are several advantages that network participants stand to reap. Amongst many are cost-cutting, security, and elimination of transaction latency. Shortly after, Ripple Labs announced their partnership with Santander. Under this new arrangement, Santander’s One Pay X shall integrate with the Ripple Net though there was no mention whether One Pay X will execute transactions via XRP. Nonetheless, this integration is welcomed.
On the regulatory front, Michael Didiuk, a former member of the SEC analyzed the Howey Test concluding that XRP is not a security since it flouts some of the stipulations that make it a security subject to SEC oversight.
Michael Didiuk, 8 year-long former US SEC employee pic.twitter.com/7P3dSFdzg1
— Steven Diep (@DiepSanh) October 4, 2018
He went on to say XRP and Ripple are two distinct companies which can operate without the involvement of a third party. At the moment, Ripple is dealing with a class-action lawsuit where a plaintiff (David Oconer) insist that XRP is a security created by Ripple Labs so as to fund the “operations and the development of the XRP ecosystem”.
XRP Price Analysis
Even with strong fundamentals backing price, XRP is down 17 percent in the last week. Though our last trade position as laid out in our previous XRP price analysis is still valid, traders can add to their long position. Notice that the 17 percent drop has seen prices decline more than 50 percent from the week ending Sep 23 highs.
When we place a Fibonacci retracement tool between the high low of the bar, then prices are currently trading inside our recommended buy zone. This zone is marked by the 38.2 and 61.8 percent Fibonacci retracement levels with 45 cents acting as the lower limit and suitable stop level.
Our recommendation will be to buy at spot prices with stops just below 45 cents. On the reverse side, risk-averse traders can wait for other after prices firm up above 50 cents (the 38.2 percent Fibonacci retracement level) before buying on dips with first targets at $1 and later $1.65.
In the daily chart, the decline of the last two days is clear and could spill over. In any case, every low will be another buying opportunity for buyers eyeballing $1 and higher in coming days.
The only spoiler for this trade plan is if there are strong losses below the main support-previous resistance-line at 40 cents.
This shall temporarily cut us out of this trade but won’t dampen a positive outlook because any revival that shall push the price above 40 cents will attract buyers.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.