By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
By Tuesday, February 18th, the XRP rate has stabilized after a series of declining. The cryptocurrency is generally trading at $0.2915.
On H4, the quotations remain in the ascending channel. They have tested the support level of the channel, hinting on an attempt to form another impulse of growth to the mid-term target level 61.8% ($0.3795) Fibo. However, it should be noted that earlier, the quotations reached the correctional level of 50.0%, pushed off it, and started quite a confident decline. So, it is highly probable that the test of the support level is a short-term phenomenon that will end in a breakout of $0.2700 and a new impulse of decline to the low of $0.1741. The idea is additionally confirmed by a Black Cross and the descending dynamics of the lines in the MACD.
On H1, it can be seen that after a declining wave, the market is forming a short-term correctional phase, squeezing the quotations between the support and resistance levels, $0.2685 and $0.2955, respectively. The Stochastic, having formed a Gold Cross in the overbought area, points at a potential breakout of the upper border and growth to the high of $ 0.3470. In its turn, a breakout of the support line of the local correctional channel will open the way to a decline to 50.0% ($0.2617) and 61.8% ($0.2414).
A couple of days ago, the XRP price fell sharply — but on two exchanges only. It may be that this was due to a low liquidity level in the market depth. Alternatively, on BitMEX the XRP could have slumped due to selling a large number of coins at a non-market (mistaken) price.
This situation is nothing new to the crypto market. Something similar has happened to the BTC rate on Binance DEX or the ETH on Coinbase Pro.
Ripple goes on promoting its technology in the world of real money, but something goes beyond this promotion. MoneyGram has announced the development of a product called FastSend. It is meant for transborder payments and will soon start work in real-time. Just one detail: neither Ripple blockchain nor its platform will be used. Ripple invested large sums in MoneyGram, no less than $50 million. It was supposed then that the international payment-processing platform will normally use Ripple technology. However, things went another way.
On the other hand, MoneyGram is not obliged to use only the blockchain in its apps and products. Anyway, for Ripple, this is just another confirmation of the idea that it should not rely on one partner only.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.