XRP ends seven-month consolidation period with the price breaching the weekly falling wedge channel resistance at $0.2500 USD, representing a 6.19% weekly increase.
The sudden turn in XRP’s fortunes has seen a number of analysts switch their predictions to long term bullish on the XRP/USD pair but the recent movement of $230 million worth of XRP from the escrow to Ripple Inc. raises doubts on the long term market prospects.
First time ever I am bullish on $XRP in my entire career?
✔️price action near range lows
✔️solid HTF bullish momentum divergence
✔️major altcoin sleeping giants slowly awaking
✔️might be good addition for steady long-term growth
— Crypto₿irb (@crypto_birb) February 3, 2020
However, the recent announcement by BitMEX on the launch of new perpetual swaps on XRPUSD starting 5th February, does not bode well for the token’s bullish narrative in the long term.
XRP gains over 6% in a week breaking key resistance
In what has been a rather successful week across the altcoin market, XRP only managed to rise by a mere 6.19% to trade at an intra-weekly high of $0.26050 USD. The spike caused the price to breach the weekly bearish wedge resistance at $0.25000 USD and close above the key point for the first time since January 2018, ending a two-year long bearish trend on the pair.
— The Wolf Of All Streets (@scottmelker) February 4, 2020
Bulls have since eased the momentous spike to currently buy the token at $0.25600 USD, across major exchanges. With the relative strength index (RSI) on the higher timeframe charts signaling a bullish divergence and the Elliot’s Wave Oscillator turning green for the first time since October, bulls look ready to push the price past $0.30000 USD in coming weeks.
However, the hopes lies heavily on Ripple Inc., the largest custodian of the XRP token.
Over $230 million in XRP transferred to Ripple Inc. from escrow
It is no longer a secret that Ripple Inc.’s main cash raising facility is the XRP token. Since 2013, the company has sold over $2 billion of XRP in the open market with the past quarter being the only difference. Well, yet again, movement has been detected within the XRP escrow wallet as $230 million USD worth of XRP was transferred to Ripple’s account.
Is a selloff imminent on XRP’s markets? If the past is anything to go by, the two transactions of 200 million XRP (~$50.4 million USD) and 500 million XRP (~$127 million USD) to Ripple from the escrow signals a possible dump in the coming quarter.
BitMEX launches XRP perpetual swaps, catalyst to $0.3000?
The prospects of XRP look rather bullish in the coming weeks given the rapid development in Ripple and XRP boosted by community participation. A recent announcement from BitMEX exchange confirmed the launch of XRP perpetual swap contracts, which are expected to further deepen the market’s liquidity.
We at BitMEX are proud to announce that trading of a new perpetual swap on the XRP token (XRPUSD) will begin at 0400 UTC on 5 February 2020.
— BitMEX (@BitMEXdotcom) February 4, 2020
Could the new derivative asset push the price past the psychological $0.3000 USD mark? Well, the community does not look so optimistic as critics see this as an opening for bears to gain strength in the market.
Is it called Ripple, XRP, or dogshit? Who knows, who cares. It’s worth more than zero so it’s time to trade the USD pair on BitMEX. Boo-Yaka-sha! https://t.co/pa3T5vd5kl
— Arthur Hayes (@CryptoHayes) February 4, 2020
(Article updated for accuracy)