- XRP price observed some increase in the past day but not enough to initiate a recovery rally.
- Until XRP holders begin accumulating again, the chance of a rally akin to the end of October is unlikely.
- The Head of Payments Product at Ripple stated that the company intends to be a large part of the potentially $300 trillion cross-border payment industry.
XRP price is starting to halt its downtrend, but the altcoin still does not have enough bullish momentum to initiate a recovery rally. For the most part, the focus of the parent company Ripple is now on the macro-financial aspect, as evidenced by an executive who stated that the payment processor is eyeing the global cross-border payment industry.
Ripple has its next target
Ripple, which has been a key entity in connecting banks and other financial institutions for conducting instantaneous cross-border payments, is now looking to double down on the same. According to the Head of Payments Product at Ripple, Pegah Soltani, the company intends to revolutionize the cross-border payment sector, potentially using a powered solution.
According to Soltani, the industry has the capability of becoming a $300 trillion sector by 2030, and if Ripple manages to become a crucial part of it, it would unlock immense profits for not just the company but for XRP holders as well.
As is, XRP is an important part of institutional investors’ holdings. As observed in the Coinshares’ report, for the week ending November 17, XRP bought in over half a million dollars in investment, bringing its month-to-date inflows to $17 million. Consequently, since the beginning of the year, the cryptocurrency has managed to bring in $68 million, which is much higher than the other assets on the list, such as Cardano (ADA), Tron (TRX), etc.
Ripple institutional inflows
This is expected to act as a bullish catalyst for XRP price as well.
XRP price continues to struggle
XRP price is likely set to begin a sideways movement, trading at $0.620 at the time of writing. Over the past two weeks, the altcoin has declined by close to 19% but gained slightly in the past 48 hours.
Nevertheless, the larger picture ascertains that until XRP manages to reclaim $0.644 as a support floor, a recovery rally is unlikely. The Moving Average Convergence Divergence (MACD) indicator has also yet to confirm a bullish crossover, as the bars on the histogram are still red, suggesting that the bearishness is waning.
Thus, a retest of $0.644 would prove to be the bullish boost needed for Ripple to initiate a recovery rally and send the XRP price to $0.700.
XRP/USD 1-day chart
However, if the sideways movement continues and XRP fails to produce enough bullishness, it could slip back down to test $0.600 as support. Falling through this line would invalidate the bullish thesis and push the altcoin to $0.551.
Investors need to make a move
By the looks of it, the XRP price is bound to witness sideways movement for a while since the investors are not making a definite move at the moment. Neither are XRP holders willing to sell their assets to book profits or offset losses nor are they trying to accumulate more tokens to instill a sense of bullishness in the market.
This is evident by looking at the Market Value to Realized Value (MVRV) ratio. This indicator is used to assess the average profit/loss of investors who purchase an asset. The 30-day MVRV ratio measures the average profit/loss of investors who purchased an asset in the past month.
For Ripple, when the 30-day MVRV hits 12% to 23%, XRP has undergone major corrections. At this time, investors are likely to sell their holdings to realize profits, which could trigger a sell-off. Hence, this area is termed a danger zone.
Likewise, when the MVRV value hit anywhere between -17% and -32%, it was often followed by rallies. Hence, this area is termed an “opportunity zone” and an ideal place for accumulation.
Ripple MVRV ratio
But since XRP has missed hitting either zone during the recent rally and correction, investors are likely going to refrain from making a move until they witness clearer signs. Thus, Ripple will most likely have to wait for either accumulation or selling and consequently continue moving sideways for a while.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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