XRP (XRP) – the second-largest altcoin in the market – has been showing some signs of recovery over the past day. XRP is currently one of the few digital currencies that are trading in the green at the time of writing. The price of XRP has surged by almost two percent over the past twenty-four hours, while other digital currencies are still correcting lower. The recent dip in XRP prompted many XRP holders to increase their holdings.
Data from Coinbase – a top digital currency trading platform – revealed that over 80 percent of XRP holders are continuing to acquire more XRP tokens. The price-performance of XRP over the past months has been very poor. The digital currency has been struggling below the 50 cents level.
Ripple – the parent firm of XRP – has been working towards the global recognition and adoption of XRP. This year, the firm has brought a lot of partners. The most recent partner on the list of the firm is MoneyGram. MoneyGram has already started using XRP-powered xRapid to process payments. However, the efforts of the firm do not seem to be paying off yet. But many digital asset investors and analysts believe that XRP is going to greatly benefit from all these partnerships in the near future.
XRP price recently plunged heavily below the 30 cents mark. The digital currency started this heavy downward trend when Bitcoin (BTC) plunged below the $10k range. XRP price plunged lower and tested a low of 24 cents before it started consolidating higher again. At the press time, it appears that XRP has found strong support at the 25 cents mark. It is difficult to pinpoint the exact cause of the recent plunge in the market. However, some XRP enthusiasts have attributed the slow growth of XRP to skepticism exhibited by regulators.
Some traders are also saying that Ripple is the cause of the slow growth in XRP price. Their reason is that Ripple has been dumping enormous quantities of XRP tokens in the market, which is further slowing down the growth of the digital currency. A crypto trader started a petition on Twitter, asking Ripple to cut down the supply of XRP token in order for XRP price to pump. XRP fans believe that if the supply of XRP tokens is reduced, there would be some sort of scarcity, which would result in an increase in the price of the digital currency.
XRP is currently showing signs of recovery. However, the candlestick chart of the digital currency is showing that the bearish traction is not yet over. The daily relative strength index (for 10 periods) stands at 26.18; this signals that XRP is currently in oversold territory. The Moving Average Convergence & Divergence is still below the signal line. All these indicators are pointing out that sellers are currently in charge of the market. While XRP is supported at the 25 cents mark, the digital currency might have issues breaking over the 28 and 29 cents mark. After that level, the next major hurdle will be at the 30 cents mark.