In this XRP analysis, we study how XRP bounced back this summer to help catapult the cryptocurrency back to its bullish state. You may also check this out for a more detailed XRP technical analysis.
Ripple (XRP) had a strong finish this summer in terms of price action and buying volume as the current fourth-largest cryptocurrency by market cap, according to CoinGecko. At the time of writing, a single XRP is worth $0.23, which is more than double of March’s lowest price of $0.10.
So how does XRP fare now? Let’s head over to the charts for our XRP analysis.
XRP Technical Analysis
XRP recovered after its March-April crash (source: TradingView)
As the chart shows, XRP has had a strong recovery after its March crash. The bulls were able to gain overwhelming support as many traders saw the dip as a rare buying opportunity. While the asset is undergoing a prolonged consolidation period, it is very unlikely to crash once again.
The exponential moving average (EMA) is also showing healthy signs despite the consolidation. Nevertheless, the upward trend has begun from July-August and will continue to do so after its price correction.
XRP Sentimental Analysis
XRP buying volume surged during summer (source: MarketWatch)
Based on the chart above, the XRP buying volume surged during summer, particularly toward the start of August. This is very interesting, since XRP has no correlation with the DeFi hype during this time.
Other major currencies like Bitcoin and Ethereum rose during this period as well. With this, we can attribute the XRP recovery in this XRP analysis to the weakening of the US dollar during this period. With so many countries and economies being affected by the COVID-19 pandemic, others have chosen to grow their assets through cryptocurrencies including XRP.
If this is true, then XRP is being viewed by many as a good investment option for 2020 and beyond.
XRP technical analysis aside, Ripple has formed a number of meaningful partnerships and other milestones this year as well, particularly with finance sectors. Here are some of them:
- OCB partners with RippleNet for remittance services
- SBI partners with Ripple to give XRP to eSports players
- Ripple launches On-Demand Liquidity (ODL)
- Wirex raised $1.5 million on its securities offering
So far, according to our XRP technical analysis, a massive buying during the summer helped XRP regain its footing from a sustained price crash during the end of the first quarter. According to our sentimental XRP analysis, one reason for this is the surge of investors who poured their money to major cryptocurrencies in the midst of the economic crisis brought by COVID-19.
Now that many economies are recuperating, we see that some cryptocurrencies including XRP are having price corrections. We will see how it will fare in the next months to come.