Following an impressive rally, reaching even more than 60% of gains within only a week, XRP bulls took a breath and a significant correction was seen on Tuesday.
The reversal saw (at the time of writing) a 14.60% drop to the actual price of $0.448 (coinmarketcap.com) with a market cap of 17.9 billion. Nevertheless, the stellar week saw an increase of market cap to incredible $27.5 billion last Friday, but since then, bulls closed their long positions and natural correction came.
Last week’s jump was based in the execution of agreement to form partnership with PNC Bank, the 9th largest bank in the U.S. by assets, joining Ripple’s blockchain network RippleNet, being a global payments network of over 100 institutions, including banks, payment providers, remittance forwarders etc.
Another positive news came from content creators on YouTube, Twitch, Wikipedia, accepting Rippe, while Ripple Labs also announced that it’s launching xRapid, what is an XRP- denominated payment service in October.
On this basis, number of speculators took long positions against USD and BTC, thus boosting sentiment much higher in favour of Ripple, reaching its high on Friday, exceeding shortly even $0.60 level.
From the technical analysis point of view, there’s a head and shoulders pattern forming at the XRP/USD in case of further bearish momentum or even a pullback may occur from the rising trendline, confirming bull flag formation.
Nevertheless, from a long-term perspective, Ripple is heading for a stronger fundamental position thank to Ripple Labs, concluding new and new agreements on innovative technologies.