Ripple’s native token XRP was among the best performers in the cryptocurrency space, even as the delisting on exchanges gained momentum.
The XRP / USD exchange rate rose more than 40 percent on a 24-hour adjusted time frame, hitting an intraday record of $ 0.328. Measured from its low of $ 0.17 as of December 30, the pair traded nearly 94 percent higher, indicating a successful post-crash drop of 82 percent from the annual high of $ 0.92.
Ripple rebounds with moderate volume. Source: XRPUSD on TradingView.com
The Ripple’s gains mainly appeared in the wake of a market-wide price hike in the cryptocurrency market. Traders then increased their bids on all top cap coins Bitcoin registered all-time highs above USD 37,500. Altcoins usually do better after Bitcoin hits the top. That partially explains why XRP has skyrocketed.
Meanwhile, the token also rose like Ripple signed a deal with the central bank of Saudi Arabia to innovate their payment infrastructure with blockchain solutions. The news spelled Ripple’s expansion plans outside of the US, especially as it faces a lawsuit from the Securities and Exchange Commission (SEC) over alleged illegal sales of securities.
The possible lawsuit has prompted crypto brokers to cut XRP support from their services. They include Voyager Digital, Grayscale Investments, Blockchain.com, Coinbase, Binance, and OKCoin. Bitwise Assets Management also liquidated $ 9.3 million from their crypto index fund.
A group of XRP investors have also sued Jay Clayton, chairman of the SEC, over personal hostility over his enforcement action against Ripple.
Dead Cat Bounce
XRP’s rise, despite its fundamentally bearish bias, has raised concerns about a bogus rebound. A pseudonymous analyst tweeted Thursday that he sees the XRP / USD pullout as a “dead cat bounce” – a small, brief recovery in the price of a falling asset.
Ripple's potential price action, as illustrated by IncomeSharks. Source: XRPUSD on TradingView.com
“XRP with strong horizontal support, but even if it has the advantage, it is minimal to buy here,” said the analyst. It took years to move, and it could take years to recover. There are much better assets to trade in my opinion. The odds of $ 0.50 to $ 1.00 are even lower than before. “
Meanwhile, independent analyst Michaël van de Poppe said XRP / USD should break above $ 0.31- $ 0.34 to confirm a steady bullish bias. Until that happens, the chances of more sales from the pair would increase.
$ XRP must crack this zone of significant resistance in order for the buoyancy to continue.
If not, more consolidation is required.
– Michaël van de Poppe (@CryptoMichNL) January 7, 2021