XRPUSD is poised to have another day where it loses value. This is after closing yesterday’s trading session with a loss of 1.74 per cent.
However, I think the recent drop in price is temporary, and based on the recent positive news cycle, I Ripple prices to start rising.
Latest Ripple Price News
The company announced recently that it had purchased $200 million worth of shares. These shares, issued initially to Tetragon Financial Group, SBI Holdings, and Route 66 Ventures during series C funding, were purchased by Ripple, a move seen as an effort from the company to strengthen its financial standing.
The buyback option from Ripple has seen the company valuation rise to $15 billion. The move also strengthened investors’ resolve on Ripple and showed they still had a strong balance sheet and positive cash flow.
XRP Price Prediction
XRP opened today’s trading session at $0.6087, hitting highs of $0.6137 and lows of $0.5942. Unfortunately, today’s trading session also marks the second consecutive day that Ripple prices dropped.
Looking at the XRPUSD daily chart, Ripple failed to reach a long-term support level of 0.5199. Instead, the pair set a new low of $0.5493 on January 22, forming a new support level. The new support levels were tested on January 24, where the prices failed to break out and started an upward move.
Currently, Ripple is trading at 0.5991 and coming from a support level rebound. Although today’s prices are declining, there are strong technical indications that Ripple has entered a bullish market.
The first sign is that Ripple has set new price lows of $0.5493, acting as support. As recently as January 24, the prices tested the support levels and failed to break them. This resulted in a minor rebound from the support levels. However, I expect the prices to start rising based on the divergence on the RSI indicator and the recent failure of the prices to break out of support levels.
RSI indicator reading on the daily chart also shows that the prices are in the oversold region. This indicates that Ripple is currently undervalued and trading below its optimum pricing. Therefore, RSI analysis also shows that the prices are likely to have an impulsive bullish move.
However, my analysis will be void if the prices continue with their recent decline and break down the $0.5493 support level. When that happens, expect a continuation of the long-term bearish move, possibly reaching the long-term support levels of $0.5199