Ripple’s native token XRP was among the top performers in the cryptocurrency space, even as delisting gained momentum across exchanges.
The XRP / USD exchange rate rose more than 40 percent on an adjusted 24-hour period to hit an intraday high of $ 0.328. The pair was trading almost 94 percent higher from its low of $ 0.17 on December 30, signaling a successful retreat from its annual high of $ 0.92 after crashing 82 percent.
Ripple rebounds with moderate volume. Source: XRPUSD on TradingView.com
Ripple’s gains were mainly reflected in a market-wide price rally in the cryptocurrency market. Traders increased their bids on all top-cap coins after Bitcoin hit record highs above $ 37,500. Altcoins usually do better after Bitcoin hits the top. This partly explains why XRP has soared.
Meanwhile, the token also skyrocketed when Ripple signed a contract with the Saudi Arabian central bank to innovate their payments infrastructure with blockchain solutions. The news spelled Ripple’s plans to expand outside of the United States, especially as the Securities and Exchange Commission (SEC) is on trial over alleged illegal securities sales.
The potential legal battle has led crypto broker exchanges to remove XRP support from their services. These include Voyager Digital, Grayscale Investments, Blockchain.com, Coinbase, Binance and OKCoin. Bitwise Assets Management has also liquidated $ 9.3 million from its crypto index fund.
A group of XRP investors have also sued SEC chairman Jay Clayton for being personally hostile over his enforcement actions against Ripple.
Dead Cat Bounce
The surge in XRP, despite its broadly bearish bias, has raised concerns about a false rebound. A pseudonymous analyst tweeted Thursday that he sees the retreat of the XRP / USD as a “dead cat bounce” – a small, brief rebound in the price of a falling asset.
Ripple's potential price action, as illustrated by IncomeSharks. Source: XRPUSD on TradingView.com
“XRP with strong horizontal support, but even if it holds the uptrend buying here, it is minimal,” the analyst said. “It took years to move and it could take years to recover. In my opinion there are much better assets to trade. The chances of winning from $ 0.50 to $ 1.00 are even lower than before. “
Meanwhile, independent analyst Michaël van de Poppe stated that XRP / USD would need to break above the $ 0.31-0.34 range to confirm a steady bullish bias. By then, the pair would be more likely to see more sell-offs.
$ XRP has to break through this significant resistance zone to continue the upward thrust.
If this is not the case, further consolidation is required.
Full analysis: https: //t.co/VnjR2q012a pic.twitter.com/xKcQSNtnNZ
– Michaël van de Poppe (@CryptoMichNL), January 7, 2021