XRP Price Analysis: XRP/USD Huge Technical Development for the Bulls

  • XRP/USD extends higher out from a bullish pennant pattern, which was seen on the 60-minute chart view.
  • Bulls will now be looking for a fast move towards the big psychological $0.5000 mark.

Ripple’s XRP has been making gradual progress, laying the foundations for a great upside move to potentially come. The price is finally moving higher, after 16 trading sessions stuck within firm consolidation mode.

Recent Ripple News Flow

SBI Holdings Inc., a large Japan-based financial institution, recently confirmed details that they will require more usage of XRP. The CEO of SBI, Yoshitaka Kitao, noted that the company are in negotiations for the development of a new project with R3. It is said that this would require more usage of Ripple’s XRP. As a recap, back in 2016 SBI Holdings agreed to enter into a partnership with Ripple. This was to facilitate SBI Ripple Asia, which consists of a whopping 60 Japanese banks.

Who are R3?

R3 is a distributed database technology company. They lead 200 firms that operate in research and development of distributed ledger usage within the financial system, in addition to other areas of commerce.

In May 2017, SBI Group had led a funding round for R3CEV, which was the largest consortium within blockchain to have been reported in the history of the industry. The total funding round was for $107 million. Furthermore, this was being raise for the facilitation of development in enterprise-grade blockchain networks. Finally, SBI Group have been working with R3, as they are in the process of creating a variety of blockchain-based systems that are going to be utilized by mass conglomerates.

Technical Review – XRP/USD

XRP/USD had been moving within a bullish pennant pattern, as seen via the 60-minute chart view. The formation of this commenced on 31st October following a spike higher in attempt of recovery for the 29th October drop. Following this, the pennant pattern formed after a brief period of consolidation between 31st October to 1st November, before breaking out to the north.

XRP/USD 60-minute chart

Looking at the daily chart view, this recent pennant breakout development has opened doors to a larger potential move. The price had been moving within a bull flag formation since 16th October. Furthermore, a daily closure on 1st November was observed above the flag pattern. As a result, in the session so far today – Friday 2nd November, bulls have gradually capitalized on this. Furthermore, the next upside target is likely going to be towards the $0.5000 mark, where an area of supply is seen. Lastly, support should be noted now just on top of the breached bull flag, $0.4550.

XRP/USD daily chart

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.