Ripple is very much volatile this week, and there’s a good fundamental reason for that: this time, it’s because of the rumors saying Ripple might be added into the Coinbase listing. Technical background soon came in line with the fundamental one, but later the company denied the rumor, and Ripple immediately reversed, spiking lower.
This Coinbase listing story looks very unlikely even at first sight. On the one hand, there are currently two legal actions against Coinbase regarding unclaimed property regulation and insider trading. Both actions are being investigated, and meanwhile Coinbase is not going to add any new cryptocurrencies into its lists.
On the other hand, its not the first time Ripple faces such a situation this year. In early 2018, Ripple was rising strongly as the investors were cheered up with such listing rumors, and just as this time, the company then denied those rumors entirely. Moreover, Ripple commented that the listing process was governed by a team of company’s experts taking balanced decisions regardless of the trading process.
Thus, the fundamental factor appearing from nowhere made Ripple skyrocket against the dollar, but then fell right after the denial came out.
Technically, Ripple reached its Feb 20 high at $1.0860, while during the last trading session it faced a pullback, and is now trading at $0.8850. With around 86% correction, the digital currency lost nearly all its recent gains. The key support for Ripple is at $0.8720, the next sellers’ target being at $0.8500. If both these levels are broken through, the price may slide further down to $0.7200. Meanwhile, MACD is still in the negative territory and is not giving any clear signal. Stochastic oscillator is headed down, indicating a selloff.
Thus, Ripple is very likely to head down and then trading sideways, with the support at $0.7200, which would be not easy to take even for the most experienced sellers. At the time of this writing, Ripple is not trading very actively, going somewhat down, while many other altcoins are also in the negatives against the dollar.
Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.