Quite unexpectedly and without an important announcement from SEC, CoinBase or Ripple, XRP prices are up 20%. The result is a significant increase in commercial volumes and a peak above 30 cents which triggers previous purchases and stops. Although XRP is technically bearish due to the effect of the week ending on 12 August bursting candlestick, any increase in resistance from 40 cents to 45 cents could be the fuel needed for further gains.
Latest news from Ripple
Obviously, the determination of the SEC on whether XRP, the native currency of the Ripple ecosystem, is an "investment contract" that complies with Howey Test clauses is a reason to concern for investors and the community as a whole. This is why the recent chain developments and the inevitable update of XRP Ledger Network to version 1.1.0 are something exciting. It is easy to understand why: these developments provide a road map towards greater transparency, network security and complete decentralization that neutralize the impact of third parties on prices.
Among the implementations there is the introduction of the DepositPreAuth amendment which, when combined with the DepositAuth amendment can help the user in whitelist addresses and even pre-authorize inbound transactions. These chain enhancements that the team is urging the nodes to adopt by the end of the month would improve security and in the process by encouraging fair global adoption.
This and other Ripple objectives were further elaborated by Sagar Sarbhai, the head of Regulator Relations at Ripple for Asia Pacific and the Middle East. In addition to suggesting that xRapid, a payment processing solution that was piloted by several remittance providers such as Western Union, would be officially launched in the next month or so, it also said that the company has actively engaged the SEC to explain to them the different user case of XRP. This is in their attempt to prove that XRP is not a security and that there is no entity, a third party that could affect the price of XRP at the expense of investors.
XRP Price Forecast
Weekly XRP Price Charts
Once again, the main 25 cents support line has supported XRP prices. The result was the emergence of sellers and a double price spike and market share. While the week ending September 9th, the candle continues to seal bullish attempts as the chart shows, XRP bulls need more of yesterday's gains to validate the trend inversion.
From the previous analysis we reiterated that for XRP buyers to emerge on top then there should be strong close above 45 cents on the bottom side and 55 cents on the upside before conservative traders can enter the market and buy on declines. This would represent a break in consolidation and the reversal of two months of the week ended with the losses of 12 August. Before that, we should take this awakening with a pinch of salt.
XRP Daily Charts
Two things are clear in the daily chart. Firstly, the significant increase in market participation levels, that is, volume. Secondly, the reversal of 25 cents to the right of the fund, resulting in a bullish engulfing model.
From the chart, not only has this 20% peak reversed the losses of 17 September but prices have closed above 30 cents by activating the stops and activating short-term bulls with targets of 40 cents – the main trend line of the resistance. By taking advantage of these quick gains, we recommend short-term purchases on dives with 40 cents goals.
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Disclaimer: The opinions and opinions expressed are those of the author and are not investment advice. Trading any form involves risks, as well as your due diligence before making a commercial decision.