Ripple (XRP) Finds Support Atop The 50 Day EMA

Jan 23, 2020 at 9:37 PM
Ripple (XRP) has just found support atop the 50 day exponential moving average. It is still trading below the 61.8% fib retracement level and might face some resistance to break higher but it is likely to rally higher near-term along with the rest of the market. 

Both the RSI and Stochastic indicators have signaled a bearish crossover but it may take a while for that larger downtrend to kick in. The focus for now will remain on trapping in as many retail bulls as possible on the halving FOMO. %K is at 70.32 whereas %D is at 58.97. RSI is at 56.93 on the daily time frame. 

The risks that XRP/USD face near term are still there and we expect the cryptocurrency to face an unprecedented downtrend in the near future should it fail to turn bullish. As the probability of the world going towards a digital dollar and other digital fiat currencies increase, Ripple's use case becomes even less effective. The case for XRP is already far too weak because it is now clear that most of the big banks do not want to use Ripple's xRapid service which is why they have already removed it from their website. 

If you look at the use cases for XRP on their own website, you would see that they mention three use cases: wallets and exchanges, content and gaming. All of this is pretty basic and one can tell right away that there is a ton of cryptocurrencies that can do the same. Quite simply, there is not even a need for cryptocurrencies doing this. This is not even a problem. Most of the big games have their own currencies, same goes for exchanges and so on. This is a lot similar to the dot com boom. A lot of companies received funding and insane valuations on ideas that seemed hot and flashy just like the one of Ripple's early ideas that it is going to take on the trillion dollars forex market. However, as the market matures, the projects with real uses cases solving real problems thrive while the others lag behind and eventually fade away, case in point Google and Yahoo, Facebook and Myspace. 
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