Ripple’s XRP token has enjoyed a fruitful start to 2020 with an outstanding 47% rally since the turn of the year.
XRP value – technical analysis
Over the weekend it surged towards the $0.35 level of resistance before suffering a gruelling rejection that saw it slump back down to $0.27.
The daily 50 exponential moving average is rapidly moving towards the 200 EMA, and a cross to the upside would result in a long-awaited golden cross, which should in-turn create further momentum to the upside.
While the recent sell-off has been significant, XRP remains in a more bullish posture than it was towards the back end of 2019 when it struggled below the $0.20 level.
Several analysts are also predicting a substantial rise in the value of XRP over the coming weeks and months with numerous technical aspects being compared to the bull-run of 2017.
In 2017 XRP surged from less than $0.13 all to way to an impressive all-time high of $3.30 within six months.
Following more than two years of a painful downtrend that has seen the value of XRP drop by as much as 95%, the recent rally signifies a clear shift in market sentiment around Ripple and XRP.
Garlinghouse hits out at “FUD”
Last year marked a difficult time for Ripple CEO Brad Garlinghouse who, on numerous occasions, leapt to the defence of the project amidst scrutiny from investors and regulators.
In August, Garlinghouse adamantly revealed that “XRP is not a security” in spite of criticism from investors.
The 49-year-old also responded to a lawsuit filed by XRP investors who claimed the Ripple foundation controlled the price of XRP by selling a vast amount of the tokens in over-the-counter (OTC) deals.
I'm always struck by the questionable sources (i'm being generous here) spreading FUD about #XRP and @Ripple. Even more so over the last few weeks (Ripple's XRP sales, litigation etc)…. thus, I feel compelled to comment
— Brad Garlinghouse (@bgarlinghouse) August 27, 2019
He said: “As a defendant in the class action lawsuit, I won’t get into the details (response from Ripple is coming soon). I will say: SEC guidance isn’t issued by the Commission and isn’t law, rule, or regulation. It’s clear XRP is not a security and the UK and others have said as much.
“XRP sales are about helping expand XRP’s utility – building RippleNet and supporting other businesses building w/XRP such as Dharma and Forte. Reality is we DECREASED our sales by volume Q/Q and since then the inflation rate of XRP’s circulating supply has been lower than that of BTC and ETH.
“Ripple continues to set industry standards in reporting and transparency (one example is our quarterly markets report). We lay it all out, and it’s not our ‘view’ but fact.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.