The price of the third-largest cryptocurrency by total value is up 16 percent Monday, buoyed by speculation it could soon see a major exchange listing.
Indeed, comments on social media indicate investors now expect XRP price to extend Monday’s gains ahead of an alleged appearance by CEO Brad Garlinghouse on CNBC’s “Fast Money” Tuesday. Also said to be on the program is Coinbase COO Asiff Hirji, a possible coincidence that’s raising conjecture the major U.S. exchange will add support for XRP trading.
Currently, Coinbase offers trading for bitcoin, bitcoin cash, litecoin and ether, meaning the addition of XRP could enable a new outlet for retail trading.
Still, while details about the appearance are scant (it’s not clear if the two will be appearing together, and neither has tweeted plans for the show), XRP is trading at $1.05, having appreciated 16 percent in the last 24 hours, according to data provider CoinMarketCap.
Yet another potential driver is a surge in South Korean trading volumes, with four out of top 10 exchanges by trading volumes being based in the Asian nation. Indeed, Bithumb, in particular, has seen its XRP trading surge more than 30 percent on the day.
The rumor mill might keep XRP well bid for another 24 hours. That said, the price chart analysis indicates better days ahead of the XRP token.
Daily chart
The above chart (prices as per Bitfinex) shows:
- XRP formed a base around $0.86 (78.6 percent Fibonacci retracement of the rally from the Dec. 7 low to Jan. 4 high) and staged a solid rally from the rising trendline support (drawn from the Dec. 7 low and Feb. 6 low).
- The relative strength index (RSI) has turned bullish (above 50.00 and rising).
- The 5-day moving average (MA) and the 10-day MA trend northwards, indicating short-term bullish setup.
The only factor that could be listed as the one favoring the bears is the bearish 50-day MA and 10-day MA crossover.
However, long-term moving average crossovers are lagging indicators. So, XRP looks set to take out the descending trendline (drawn from the Jan. 28 high and Feb. 17 high) resistance.
Long positions rise
- The rise in the XRPUSD long positions adds credence to the sharp rise in prices and indicates the gains are sustainable. An uptick in prices and a no change in long positions or a drop in long positions would have indicated a bull trap.
View
- XRP will likely close today (as per UTC) above $1.04329 (descending trendline resistance on the daily chart), signaling a bullish breakout on the charts. Prices could then revisit $1.38 (61.8 percent Fibonacci retracement) and $1.4060 (Jan. 28 high).
- On the downside, a daily close (as per UTC) below 0.8610 (78.6 percent Fibonacci retracement) would signal a bullish-to-bearish trend change and would allow for a deeper sell-off to $0.5729 (Feb. 6 low).
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Ripple, the company that oversees XRP development.
XRP image via Shutterstock