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Technical Analysis

Ripple (XRP) Under Pressure as David Schwartz Liquidates

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Latest Ripple (XRP) News

Ripple Inc is a start-up behind a multi-billion coin, currently changing hands at around 30 cents. Therefore and largely because of this mega-valuation and investor expectations, company leaders are always under a microscope and for every move or comment; pundits are quick to draw conclusions—bad or good, inevitably affecting the short—or long-term trajectory of XRP.

Although it is the third most liquid coin and a tool, a medium of exchange facilitator, for companies that would rather leverage xRapid over xCurrent, the utility coin is under immense pressure and ranging. Still, it is down 90 percent from 2017 peaks thanks a drop in Bitcoin (BTC) prices– which has a direct correlation with XRP, and other fundamental reasons as doubts on XRP’s status—security or utility.

Even so, that is not preventing executives from liquidating via a transparent ledger where every whale account is tracked. Just recently, David Schwartz, the CTO of Ripple Inc, was accused of unloading his assigned XRP private stash. A Twitter user, Hlnoooo, said this was “bearish” and the “biggest warning” since the beginning of 2017.

Nonetheless, it should be understood that this is not the first time Schwartz is selling. He sold his first at 40 cents and when prices rallied in late 2017 as shown from his transaction activity:

XRP/USD Price Analysis

Ripple Daily Chart--Apr 25

Trading at 30 cents, Ripple (XRP) is visibly under pressure. From the chart, sellers are in control, driving prices back to an important support mark. Because of this, XRP is oscillating within a 4 cents range against the USD with clear caps at 40 cents and 30 cents on the lower end.

Still, we shall maintain a bullish outlook expecting prices to bounce off this level like it did on Jan 30. If bulls flow back, then it is likely that bulls of Sep 2018 will support price. Therefore, from an effort versus result point of view—note that prices are ranging within Sep 2018 bull bar–, buyers stand a chance. However, it would be until after there is a strong close above 40 cents that traders can buy on dips with targets at 60 cents or Dec 2018 highs or even highs of 80 cents.

Ideally, what would confirm a shift in momentum is a spike in participation exceeding recent averages of 20 million or even Apr-2 volumes of 79 million. On the flip side, any drop below Jan 30 lows invalidate our bullish outlook. If that is at the back of high volumes, we XRP could drop towards 25 cents and even 15 cents.

Chart courtesy of Trading View—BitFinex

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

Tabassum is an enthusiastic author, web geek, writer & digital marketer, with experience writing for tech, digital and cryptocurrency blogs.

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