Ripple has recently seen an astronomical rise in price as the cryptocurrency more than quadrupled in value in the past week, rising from a low of $0.05 to over $0.22 at the time of writing. This price hike may be attributed to rumors that are surrounding the upcoming Consensus event hosted by Coindesk. It is speculated that Ripple’s team will announce their lockup of millions worth of Ripple in an attempt to gain more trust from the community regarding the project.
The Ripple team has been hard at work securing partnerships with major clients, and it seems these efforts haven’t gone by unnoticed. Two weeks ago, Ripple released a press statement announcing their partnership with ten major clients. Some of them include: BBVA, MUFG, Cambridge Global Payments, Star One Credit Union, SEB, and much more.
These are big names in the financial services industry and it no surprise the market reacted accordingly. In fact, MUFG is a cryptocurrency project backed by Mitsubishi UFJ Financial Group Inc, Japan’s largest financial group. The fact that Ripple secured such high level clients speaks to the integrity and quality of the team behind the currency.
Furthermore, Kiritoflash from reddit had some good analysis regarding the latest price hike, he said:
Well, over $4,000,000,000 (Four-Billion Dollars) was put into Ripple in the past week increasing the price from $0.05 to $0.14+. That is a lot of money to invest. If the amount of money that is in BitCoin (25,500,000,000 – Twenty-Five-Billion-Five-Hundred-Million) was in Ripple the value would be $0.67. (25,500,000,000 / 38,000,000,000 – Market Cap divided by Coin Supply).
If the amount of money flowing into Bitcoin was redirected to Ripple, then it could see another triple in value, sending it over 10x from its previous price floor of $0.05. While this analysis may be overly optimistic, keep in mind that an increasing amount of new money is flowing into cryptocurrency as a whole, so that scenario isn’t unlikely.
Another user from tradingview, Oops_I_Charted, had great technical analysis regarding the latest rise. He said:
I’m in disbelief that it’s already moved up another decimal point, I didn’t see that coming for a long time. And for some reason even though it’s gotten very high very fast, for some reason it feels really strong, where as in the past it usually feels like it’s about to do a 100% retrace dump at any second.
He goes on to point out that the weekly and daily RSI (Relative Strength Index) is maxed out across all timeframes. RSI measures the speed and change of price movements, it is considered overbought when over 70 and oversold when under 30. Currently Ripple’s RSI is at maximum, meaning the crypto is overbought. The best strategy according to Oops_I_Charted, is to place some low buy orders and wait for a retrace.
As always trade with caution and only play with what you can afford to loose.
Dislaimer: This is not trading advice, the author of this article does not have stake in Ripple. This article is for educational purposes only. If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.