Ripple’s XRP was the main buzz in the market in the past couple of weeks when Ripple’s CEO announced three companies are now making commercial use of the digital asset. XRP saw major fluctuations, testing as high as $0.79 on September 21st, and then floating back to a range around $0.52. Here’s a quick overview of Ripple’s recent development and its future outlook.
xRapid Announcement
Starting with the buzz itself, xRapid is Ripple’s product which uses the XRP to carry out international transactions in “a matter of minutes. The three companies who will be using xRapid for cross-border payments are MercuryFX, Cuallix, and Catalyst Corporate Credit Union. Ripple (the company) remains the biggest holder the XRP tokens in existence and keeps on selling them through its subsidiary XRP II.
XRP’s Price Action
Now looking at XRP’s price action throughout the buzz, first, we saw the jump before the official announcement as the market reacted to the rumors. Then, once the price reached the 4-month high levels, XRP holders who had been sitting on their losses for a while took profit. By contrast, some investors who were excited about the news started buying XRP. This caused the price fluctuations thereafter.
XRP/USD Technical Analysis
Now looking at the price action and market psychology. It appears that XRP/USD is in the process of forming a Double Top bearish reversal chart pattern. That means we could expect a temporary pullback in XRP prices, potentially towards $0.41. Meanwhile, the daily Ichimoku cloud has now turned into a support layer which could prevent XRP from dropping more dramatically.
