Ripple’s XRP price analysis for March
- Ripple's XRP outperformed the market in recent days due to its community getting slightly more bullish.
- The cryptocurrency is still hindered by the ongoing trial versus Ripple and its executives.
- XRP's upside is extremely limited due to the current situation.
Ripple’s XRP token was one of the rare cryptocurrencies that ended up in the green in the past 24 hours. What is the reason for its strong price performance, and should you consider buying some XRP now?
Fundamental analysis: XRP is a utility token?
XRP has been under a lot of pressure due to the SEC lawsuit against Ripple and its executives. While there are as many interpretations of the hearing as there are analysts, it seems that the SEC is slowly realising that XRP has utility.
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“My understanding of XRP is that not only does it have a sort of currency value, but it also has a utility, and that utility distinguishes it (I think) from Bitcoin and Ether. Is that correct?” – a statement coming from a Judge in the Ripple case.
This glimmer of hope for the XRP community was a possible cause of XRP’s recent push up. On top of that, countries such as the UK already stated that they consider XRP as a utility token.
XRP posted week-over-week gains of 12.34%, outperforming both BTC‘s week-over-week loss of 7.35% and ETH‘s 6.70% loss. Ripple’s XRP is currently the 7th-largest cryptocurrency by market cap, boasting a value of $22.97 billion.
At the time of writing, XRP is trading for $0.5, which represents a price increase of 20% when compared to the previous month’s value.
XRP/USD technical analysis: XRP fails to break $0.55 due to lacking volume
If we take a look at the XRP/USD daily chart, we can see strong fluctuation during February, but a lot of sideways trading in March. However, the cryptocurrency did make a move towards the upside, which brought its price as high as $0.55 at one point.
The move got stopped by the 61.8% Fib retracement level of $0.553 that dates back from the November-December move towards the downside. The failed move was caused by the lacking volume, which has been on the decline ever since the start of the month.
XRP’s daily RSI is currently on a slight decline, with its value sitting at 56.12.
Zooming in to the hourly time-frame, we can see a strong push towards the upside that was caused by an influx in buyers. However, as much as the volume increase seems big on the hourly chart, when looked at from a larger time-frame perspective, it was simply not enough. After failing to break the 61.8% Fib retracement level, XRP started retracing towards $0.48.
The cryptocurrency is currently fighting for the 50-hour EMA. Its upside, on the other hand, is guarded by the descending 21-hour EMA.
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