Main navigation

3 Reasons Why XRP Is Among Market Leaders with 7.6% Pump

Fri, 04/15/2022 - 13:30
article image
Arman Shirinyan
XRP leads the day on cryptocurrency market as demand for global payment tool rises
3 Reasons Why XRP Is Among Market Leaders with 7.6% Pump
Cover image via stock.adobe.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News
Contents

XRP has surprisingly become a market-leading cryptocurrency, with an almost 8% price increase in the last 24 hours. While there are mostly speculative or technical reasons behind the growth, there is a strong fundamental cause behind the long-term growth of the asset, per CoinMarketCap.

XRP reaches support zone

The technical conditions of XRP as a tradable asset were like other cryptocurrencies out there as it dropped to $0.7 after a rapid price increase. But as other assets remain in correction, XRP bounced from the local support zone around $0.69.

XRP Chart
Source: TradingView

Right now, XRP moves in the rangebound formed since February with the range's bottom staying at around $0.69 and the top at approximately $0.86.

Entering overbought zone

In addition to receiving a boost in purchasing power after reaching the support zone, XRP was also heavily oversold on intraday time frames like four hours. The Relative Strength Index's value dropped to approximately 20, which makes XRP a heavily oversold asset—which usually leads to a short-term bounce.

Related
Brad Garlinghouse: Ripple Suit Has Gone "Exceedingly Well" and We're Having Record Growth

As for now, the asset is no longer overbought on the four-hour timeframe and reaches one of the first resistance lines on the chart, which is the 50-day moving average.

Demand for XRP as a payment tool may rise

Some investors and traders stated that amid the rate hike cycles and rapid drop in the value of USD, XRP will be used more often by investors as a decentralized payment tool since it was initially created for global payments. This implies that the company behind it plans on making XRP a rival for fiat money.

The major advantage of XRP over USD or any other fiat currency is its transaction speed, low costs and ability to send worldwide with no additional fees.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.