Ripple (XRP) has topped out once again, for the third time since the beginning of the bear market. In light of other overbought conditions for XRP/USD, this is a strong sign that Ripple (XRP) is prepared for further downside. The price could retest the yearly low to say the least. There is a strong possibility that the price may end up falling even lower than Ripple (XRP)’s yearly low of August, 2018. XRP/USD is currently trading in a descending channel that extends all the way to January, 2018 when Ripple (XRP) entered the bear market. At every stage, we saw a previous resistance line turning into a support line. If the same were to happen again, we would see the price finding support atop the current resistance turned support line that extends all the way to April, 2019.
If XRP/USD declines in the same manner as it has before when it topped out, we could expect the price to fall below $0.25 in the weeks ahead. This correction would allow overbought market conditions to return back to normal. At the end of this correction, Ripple (XRP) will also be better positioned to break out of the descending channel. Ripple (XRP)’s fundamentals appear promising than ever and a lot of large financial corporations are cozying up to Ripple (XRP). Apart from that, a big segment of the crypto community prefers Ripple (XRP) over Bitcoin (BTC). No matter what happens to Bitcoin (BTC) or the rest of the cryptocurrency market, these investors are determined to keep Ripple (XRP) alive. It makes every bit of sense that they would want to do that because Ripple (XRP) is one of the few cryptocurrencies in the market that is solving real world problems.
Chart for XRP/BTC (1D)
The cryptocurrency market is swarming with new coins that are targeting a certain niche without having anything valuable to add. For instance, there hundreds of sports coins or game coins that do nothing more than just serve as alternative modes of payment. So, for instance if a game like Fortnite or Dota 2 starts accepting cryptocurrencies, do you think people will choose to pay in XRP or some game coin that could lose most of its value in a pump and dump? The answer is obvious. Ripple (XRP) is very likely to become the Paypal, Visa and Mastercard of digital commerce in the next few years.
It may take a while for Ripple (XRP) to be used by employers to pay their employees, but online vendors looking for a stable cryptocurrency that could relieve them of the pile of problems that come with using Paypal, Visa or Mastercard will accept payment in XRP in a heartbeat as more and more people start to use Ripple (XRP). Ripple (XRP) is fast, stable, secure and cheap which makes it a better choice than Bitcoin (BTC) for online transactions. Ripple (XRP) may be overbought short term and is expected to correct a bit, but it has a very bright and promising future ahead that investors need to remain focused on.