The cryptocurrency market lost approximately USD 63 billion last week but has now embarked on a slow recovery – with Ripple leading the way.
Ripple grows following the recent slump
Ripple’s XRP coin experienced a massive surge of 21 percent over the past few hours to lead the general market recovery. The rise comes after the cryptocurrency experienced a November low at USD 0.329 last week.
Earlier today, the XRP/USD surged to USD 0.399 on Bitfinex. The surge in XRP price led to its total market cap rising to USD 15.6 billion, and in the process replacing Ethereum as the second largest cryptocurrency in terms of market cap.
The leading cryptocurrency, Bitcoin is closing in on the $4,000 mark after rising by more than 5 percent over the past few hours. The rise comes after BTC dropped to as low as USD 3,456 on Saturday to set a new 420-day low. Ethereum which is now the third largest cryptocurrency has climbed above the USD 100 following its slip to the USD 98 mark last week.
No catalyst to support the price movement
The price of XRP has surged over the past few hours without any major catalyst responsible for the price movement. This implies that it might be hard for XRP to sustain this recent surge, with the possibility of it plunging even lower something worth considering. However, Ripple could also be set to an even greater move upwards as it remains the least affected cryptocurrency in the recent bear run.
Just like other cryptocurrencies, the RSI and Stochastic of XRP indicate that the cryptocurrency has been oversold. The recent rise could be the currency trying to stabilize and it might be able to establish a new resistance level, most likely close to the 100-period simple moving average before a potential bear run overcomes it.
The last bottom USD 0.329 seems to be providing a strong support for the cryptocurrency today. There was a buying sentiment formed at that price and all signs point to the fact that the resistance could hold for a while longer.
If XRP/USD drops below the USD 0.329 mark, then it would be bad for XRP as it might decline even further towards the next support at the USD 0.268 level which has been a strong support for the cryptocurrency over the past three months.
Ripple better than Bitcoin: Cory Johnson
On Friday, Cory Johnson, the chief marketing strategist of Ripple maintained his point that Ripple is better than the leading cryptocurrency, Bitcoin. Steven Diep posted a video on Twitter where Johnson explained the reasons why Ripple is better than Bitcoin:
-Bitcoin has some real technological limitations
-The digital asset that show fundamental use cases will develop a fundamental value
-XRP is being used more than Bitcoin being used as of today
— Steven Diep (@DiepSanh) November 23, 2018
According to Johnson, Bitcoin has become more centralized since the Chinese control the largest portion of BTC mining. He added Bitcoin has some real technological limitations, with XRP being used more than Bitcoin at the moment.
Even though the statement couldn’t have affected how Bitcoin investors feel about BTC, it would most likely attract hodlers to the XRP community.