XRP Price Prediction: Down 10.2 Percent at the Back of Ripple Labs Misreporting
Latest Ripple (XRP) News
Ripple Labs, the official issuer of the Ripple (XRP) is not short of controversy, and so is the nature of the digital asset. Although liquid, slotted at third as the most valuable coin, progress is bogged down by controversies around how Ripple Labs is reporting the amount of XRP in their escrow. That’s on top of the normal debate around the official classification of the asset. Even if David Schwartz dismissed Coin Metrics allegations as time line issues, we cannot discount the effect this misreporting has on price.
In responding to Coin Metrics after their initial failure to collaborate, he said:
“We tweaked the timeline in 2018 to reflect transactions that happened each month of the quarter rather than linking returns to date of initial escrow release. Ex: A March escrow release returned in April is considered a Q2 event, not Q1. We plan to add some additional language in future markets reports in our continued efforts to be the most transparent in the industry.”
Even so, according to Fernando Nieto, a developer and cryptocurrency advocate, said:
“Coin issuance schedule has an impact on market price. The greater the amount of new coins put in circulation; the more capital is required to flow into the currency every day to keep the price. Monetary inflation consumes liquidity, so currencies with high inflation will tend to be less valuable and more volatile.”
Then again, as the majority holder, the investor community is worried that there is an element of centralization until after Brad’s firm unloads all of their XRP allowing for market forces to influence asset prices. It is therefore until after Ripple Inc cede control that critics will be satisfied that the ambitious startup will have allowed market forces of supply and demand to determine XRP prices.
Ripple (XRP) Live Price
1 XRP/USD =$0.2464 change ~ 2.46%
XRP/USD Price Analysis
Changing hands at 37 cents, Ripple (XRP) is up 2.1 but down 10.2 percent in the last day and week respectively. Even so, from the chart, erosion is not that deep.
As bulls struggle to build up momentum confirming buyers of early May and aligning price action to the general trend set by Sep 2018 bull bar, aggressive type traders should find opportunities in lower time frames to ramp up with targets at 40-43 cents main resistance line as long as prices are above 34 cents, our initial buy trigger line and now support.
Note that the mark is the 78.6 percent Fibonacci retracement level of May 2019 high low that also doubles up as Feb and Mar 2019 highs and is therefore an important reaction point. Besides, the current slide is a correction of May 15th and 16th over-extension, and hence normal.
However, should prices drop lower with high transaction volumes exceeding 187 million of May 14th below 30 cents or Q1 2019 lows, then our bullish plan will be voided. Conversely, if prices find support and snap back to trend above 40 cents, conservative traders can buy on dips with targets at 60 cents as laid out in our last XRP/USD trade plan.
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All Charts Courtesy of Trading View—BitFinex
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.