Ripple Becomes Second Largest Crypto But Could Drop in Value
Kiana Danial | Nov 25, 2018 11:58PM ET
Ripple has officially taken over Ethereum to become the world’s second-largest digital currency. Its price action on the charts is sending out mixed signals though.
While the cryptocurrency market as a whole is losing its market cap value, Ripple’s XRP got the opportunity to take over Ethereum as Ether’s coin market cap dropped to around $12 billion. Ripple’s market cap is sitting at $15 billion during Monday’s Asian trading session.
It’s worth noting that over the weekend, the majority of top cryptocurrencies saw gains as the market attempted to recover from its bearish hangover. Ripple saw almost a 6% recovery while Bitcoin surged 4.83%.
TECHNICAL ANALYSIS
Looking at the price action on the charts though, we have a bit of a mixed signal. XRP/USD appears to be in the process of forming a Double Top chart pattern and it is right now testing the pattern’s neckline, which falls on a key pivot level at 38 cents. A confirmation of a break below this level could increase the chances of further losses in the crypto/fiat pair.
Other indicators such as the Ichimoku Kinko Hyo are also pointing to further declines, as the future Ichimoku cloud . appears to be bearish. If these indications are confirmed, we could see XRP/USD to drop back to the levels from back in August at around 26 cents, which is where Ripple’s price was at before its sudden surge end of September.
Obviously, keep in mind that trading cryptocurrencies involve a ton of risk and you shouldn’t invest the money that you can’t afford to lose. But for Ripple fans, these drops could create a perfect buying opportunity.
*This article was originally published
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.