- Bearish correction kickc in after a strong rally.
- The coin is at risk of sharp correction once FOMO effect subsides.
XRP/USD broke below the lower line of the range limited by $0.60 on the upside and $0.5445 on the downside to trading at $0.5260 by press time. The third largest coin by market value and an unstoppable growth leader of the previous week seems to have run out of fuel, moving quickly to the next support level created by SMA100 (1-hour) at $0.5175. While this movement still qualifies as a healthy correction after an over 100% rally, bulls might get nervous if the price drops below $0.50 within recent trading hours. This will signal that the recovery is over and we are in for a consolidation period at best.
Currently, XRP/USD is down 8% since the beginning of Monday, and 7% lower on a day-to-day basis.
Meanwhile, cryptocurrency market experts stick to optimistic forecasts for October. They ground their bullish expectations on the assumption that Ripple company will put its crypto-backed xRapid into commercial operation. Thus, The founder of TRON cryptocurrency Justin Sun believes that other financial institutions will follow the lead of PNC and switch to the blockchain systems as they provide them with substantial competitive advantage.
“XRP’s surge shows PNC Bank’s recognition of the Ripple protocol. With Bill Clinton keynoting Swell 2018, blockchain is going mainstream. As Ripple’s Greater China Chief Rep from 2014-16 and a Ripple shareholder, I’m confident financial institutions will adopt blockchain,” he said in the interview with Cointelegraph.
A long-term Ripple investor Kieran Kelly also interviewed by Cointelegraph, foresees that this development is a massive step towards XRP’s mass adoption.
“Ripple is adding a bank per week to the network and RippleNet is life in 40 countries and six continents. PNC being the most recently announced bank shows that Ripple is making huge progress globally toward mainstream adoption, providing cheaper, faster and more transparent payments.”
However, the real trend will crystallize once the dust of the FOMO settles. It will take a few days to see whether XRP’s growth is for real, or it was just a swift-passing event.
XRP/USD, 1-hour chart
The coin is at risk of sharp correction once FOMO effect subsides.
XRP/USD broke below the lower line of […]