Ripple price analysis: XRP/USD resumed the downisde as crypto experts try to solve the transaction puzzle
|- XRP is down nearly 3% on a daily basis, but still above $0.33
- Traders struggle to understand who stays behind the huge XRP transaction.
XRP is changing hands at $0.3366 at the time of writing. The third largest digital coin retraced from Saturday's high at $0.3529 amid resumed downside trend on global cryptocurrency markets. XRP/USD has lost 2.9% on a daily basis and 1.3% since the beginning of Monday. Its market value is registered at $13.3B, while an average daily trading volume is $215M.
Meanwhile, crypto community is playing a guessing game as to what might have caused an abnormally large transaction on XRP blockchain on August 28. Someone moved about 13% of all XRP supply in tow transactions within 10 minutes. It's a rare event for the coin, which may signal that so-called whales started to move their assets.
The community noted the decentralized nature of the transactions, the high speed and low cost - the whole transfer costed less than one cent. Based on this positive aspects, traders suggested that Ripple Labs did it to demonstrate the potential and benefits of its ecosystem. However, some experts believe that the transfer was executed by a large exchange as the company announced a partnership with three trading platforms (American Bittrex, Mexican Bitso and Phillipino Coins.ph).
Ripple's technical picture
XRP/USD recovery has stalled on approach to $0.33070 with SMA100 and SMA200 (1-hour) serving as resistance levels. Once this area is cleared, the upside may be extended towards $0.3400, followed by SMA50 (1-hour) at $0.3419.
On the downside, the support comes at $0.33. The short-term forecast remains positive as long as the coin stays above with level. If broken, August 30 low at $0.32228 will come into focus.
XRP/USD, 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.