Ripple on the edge of a spectacular rise

Lately, one of the most interesting crypto currencies is Ripple. But what is it? In short, Ripple is used by banks and other financial institutions. These companies believe that Ripple's system offers better pricing and higher security than other virtual currencies, including Bitcoin. The system allows to send, receive and store any crypto currencies  in a fully decentralized manner. The company itself owns a huge stock of XRP that it regularly places on the market. But the real advantage of XRP, pointed out to banks, is its liquidity.

Why is the price of Ripple jumping?

The price of XRP is mainly due to the effect caused by the dramatic rallying of bitcoin. Investors who believe that the crypto are waiting for a bright future, are starting to look for alternatives other than ether, lightcoin, or bitcoin, in pursuit of higher profit in long term. The company itself has also reported several achievements in recent months. Ripple licensed its block technology to more than 100 banks, even American Express boarding. Last but not least, the news is that Michael Arrington's 100 million dollar hedge fund will be valued at XRP.

Still, behind this whole fundamental there is a bit of technical analysis.

A monthly chart is displayed  in front of you. In the far 2013, shortly after the currency was put into use, the price recorded two peaks at levels 0.10 and 0.13 respectively, and these levels were not reached for many years. In 2017 they were broken, after which the price was able to do a test but failed to break them. Driven by the rally of bitcoin, the price managed to record the highest peak in its history of $ 3. She then went down sharply again, and in the next year and a half she managed to wipe the whole movement and record a new bottom at level 0.25. At the same time, there is the 50 EMA, which supported the price and led to a growth of nearly 900%. Unfortunately, this growth was unstable, bringing the pair back in the range between 0.25 and 0.35 cents. The past few months have been extremely important for the currency, as it once again tested the support of the 50 exponential average. The chart shows that the price fails to break through the middle, forming formation "iii". After the month of April, the price was again heading north, this month apparently confirming the formation with a engulfing bar. As this formation resembles much the large rise in 2017, it is likely that the price of the the crypto currency will start to appreciate again, with the shorter-term targets being 23.6 and 38.2 Fibonacci levels, which correspond to 0.97 and 1.42 . The longer-term target remains at $ 3.

Read more:

• Bitcoin again over $ 8000, but will buyers retain control
• Crypto enthusiasts with huge expectations for Bitcoin in 2020 – the third halving is in May
• YouTube restored deleted Crypto-content, but not confidence in crypto influencers
• Bitcoin with buy signal just before Christmas
• Ether went into negative territory for the year