Welcome to Libertex! Could XRP go to $2 dollars and beyond in 2021? In this XRP analysis video, we will cover why XRP price predictions are being raised recently after a mostly negative year for the cryptocurrency in 2020.
First, we’ll break down XRP price analysis with the latest news affecting the latest XRP price movements, and towards the end of the video, we will give you the XRP technical analysis while looking at the XRP charts to see why XRP could be on the verge of a bull run.
So let’s get right into it. Despite having one of the best weeks amongst all cryptocurrencies, gaining 31% in value over the course of a seven day period in the second week of January, XRP has faced a barrage of setbacks going into the new year.
The worst news for XRP recently came after the United States Securities and Exchange Commission filed a lawsuit against Ripple on December 22nd, and since then, XRPs price has taken a beating.
As a result, a number of crypto exchanges followed suit and delisted XRP from their platforms which may have had a reverse consequence for the cryptocurrency, as these actions made XRP more scarce, followed by a rise in price to .33 last week.
Fortunately, Libertex is a platform that is sticking by XRP, so you can easily get your orders and positions for XRP filled through Libertex online or via the Libertex application! But going deeper, Ripple, the company responsible for the sale of XRP which owns over half the total supply of XRP, has come under fire as of late based off of allegations from the SEC that include selling XRP as unregistered security after its launch, maintaining that XRP is not following its requirements as to security. This is the critical argument here – that the SEC, under the old administration anyway, views XRP as security and not a currency.
The lawsuit comes as a blow not only to XRP but to the entire crypto sphere as well, which may have to strengthen its defensive strategies against events like this that ultimately hurt prices and long term growth.
Other allegations against Ripple include selling XRP at a discounted rate to private investors and big institutions, who then turned around and sold XRP which ultimately took the price of XRP down with it.
What we know for now is that the above points are still just allegations and that Ripple is putting up an impressive fight to move past them and resolve the issues.
The good news for XRP, Ripple, and the entire cryptocurrency ecosystem, is that the new administration is largely seen as being much more favourable to cryptocurrency. As of January 18th, president-elect Joe Biden has yet to select the next chairman of the Securities and Exchange Commission, but there is wide speculation that the appointment will fall on Gary Gensler, the former chairman of the Commodity Futures Trading Commission.
Gensler has already made several statements about XRP and he appears to be favourable to XRP in that he does not seem to view it as a security, which is ultimately the case in question here, moving on to reflect on the consequences this would pose on the growing importance of the crypto industry as a whole.
Another glint of positive news came as Forbes recommended for the SEC to drop the case. So without further ado, let’s look at the technical charts to break down the potential opportunities that traders can look for in the coming weeks and months for XRP! Were now in the Libertex terminal and were looking at the technical analysis for XRP.
Right off the bat what you can see here on December 21st and December 22nd, we got this big giant scary looking red candle as the SEC came out against XRP and filed a lawsuit against Ripple So we have some consolidation here, we have some resistance around the low .3 area and a lot of support above the .2 area.
If XRP manages to consolidate or if we get any positive news in the coming days, were going to try to answer the question of what could a potential bull run look like and what can be extended from here. In the event of an extended rally, XRP will likely test resistance at around .38 before encountering a pullback to .3 or .29 areas.
A fallback through the pivot will bring the first major support level at .267 into action. More specifically from this technical perspective, $0.316 remains the key level of resistance over the next week while $0.267 and $0.215 continue to offer levels of support in case of a downside fall.
Nothing on the MACD indicates a strong bearish trend, which is good for the bulls who want to see XRP break this resistance found at around the .3 area and push upward to previous highs If this resistance is tested and broken through, a buy signal could come into the picture in the coming days, as seen on this chart right here.
XRPs consolidation is almost hitting the breaking point hence the possibility of an upswing to the 50-day moving average and if you look at the RSI it’s definitely not overextended by any means right here so this could be indicative of getting some nice support if we do manage to break this resistance and go on to what could become a potential bull run.
In my opinion, those who got into XRP in the .2s recently are strongly benefiting from the current consolidation we are seeing at the near .3 levels and the trajectory could go very bullish from this point forward.
So what could a bull run look like? The breakout past the .3 levels could encounter the next resistance levels between the .4 and .5 The volume for XRP has increased exponentially since 2018, following the introduction of XRP to more exchanges.
This, plus developments over the SEC filing, especially if it is dropped, will possibly usher in significant bullish sentiment to XRP and result in a nice surge of upward momentum in the short to mid-term.
We hope you enjoyed this video over the latest developments with XRP and Ripple. We will continue to create content on these topics, so make sure you subscribe to the Libertex channel and leave a comment with your thoughts on whether or not you expect XRP to break out soon and where it will go in 2021! Also remember, you can open up trades with XRP instantly via Libertex, as well as over 200 other unique instruments, stocks, FX pairs, and cryptocurrencies.
Registration is free and simple, just follow the links in the description. As always, thanks for watching! We hope you have a great week in the markets and look forward to seeing you at Libertex!.
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