Ripple (XRP) is still on the verge of a massive breakout that has yet to come to fruition. The daily chart for XRP/USD shows that the price has reached the extreme end of the symmetrical triangle it is trading in and is now out of room for further sideways movement. It either has to come down or go up but it will have to break out of the symmetrical triangle. That being said, the price has been holding strongly above the 50 day moving average and it is unlikely that it will fall below this level. In fact, we might see the golden cross come to fruition if the 50 Day MA ends up crossing above the 200 Day MA which would not be very unlikely as conditions for a rally to the upside are ripe on the daily time frame.
The recent developments that led to XRP/USD reacting negatively to news of JPM Coin (JPM) have once again sparked the debate regarding the future of Ripple (XRP) now that JP Morgan is getting in the same game. There is no denying that Ripple (XRP) is no match for something the size of JP Morgan that has been playing this game for decades. However, as things stand at the moment Ripple (XRP) has an early mover’s advantage and a lot of partners on its side. A lot of analysts and investors have questioned in the past how and why banks really need to use XRP in order to benefit from Ripple’s technology. The truth of the matter is that we still do not know that. We do know that Ripple’s XRP could be a significant improvement compared to the fiat used to settle nostro/vostro accounts. However, we do not know why the banks might not just want to use their own coins instead of using XRP.
The daily chart for XRP/BTC shows that the price is trading at the lower end of the symmetrical triangle and is trading just above the 200 day moving average. The price could attempt to rise above the 50 day moving average in the near term but there is a big risk of a death cross still looming over. If the price falls below the 200 day moving average, we could see it trigger significant panic selling that could see XRP/BTC decline significantly below the symmetrical triangle.
Ripple (XRP) does not seem threatened by the entry of JPM Coin (JPM) at the moment for a number of reasons. JP Morgan does not have a good reputation when it comes to cryptocurrencies. Furthermore, we do not know if other banks are going to use their own cryptocurrencies as well although it is hard to see why not as companies like Facebook are also interesting in launching their own tokens. So, at the moment Ripple (XRP) does not seem to be seriously affected by the entry of JPM Coin (JPM) but we believe that it will hinder Ripple (XRP)’s growth potential in the long term.