The XRP token from Ripple remains stuck in the accumulation zone we reported on a few days ago. The bank-focused cryptocurrency closed the last day of April with nearly a 6% intraday gain but failed to breach a key short-term resistance, sliding about 2% at the start of May. Ripple improved XRP sales in the first quarter of 2019 and announced a string of supposedly “positive” developments for the project, yet those updates have produced only a modest price advance.
The announcements that haven’t been enough to motivate Ripple bulls
Several positive announcements for XRP have emerged recently, but they weren’t persuasive enough to drive widespread buying. Below are the most notable developments.
XRP sales recover in Q1 2019
XRP’s price hasn’t grabbed headlines with a significant rally despite a series of updates that point to favorable activity for the company and its token. The first major item was the release of Ripple’s Q1 2019 markets report for XRP. Published on April 24, the report suggests that the sharp decline in Q4 2018 not only halted but that interest appears to have returned.
Both institutional and programmatic sales of XRP rose during the first quarter, increasing by 31.3% overall. Institutional demand showed the strongest comeback: institutional sales reached $61.93 million in Q1, a 54% increase compared with the previous quarter. The report also highlights partnerships and agreements with firms such as XRPL Labs, Kava, Forte and Bolt Labs.
Nasdaq adds XRP to its global index data service
Following Bitcoin and Ethereum, XRP has been included among the digital assets reported by Nasdaq’s GIDS tool, which is used by hundreds of professional traders. On April 29, the second-largest U.S. exchange announced the addition of the Ripple XRP liquid index. The new index will be listed under the ticker XRPLX and made available to market participants immediately. According to the announcement:
“The XRP Liquid Index (XRPLX) is designed to provide a reference rate or real-time price for 1 XRP, calculated in USD and based on the most liquid market terminals. The index is calculated using a methodology that has been independently audited against IOSCO’s core principles.”
The XRPLX joins existing indices such as BLX and ELX, which cover Bitcoin and Ethereum respectively.
Former Ripple CTO launches blogging platform that will reward creators in XRP
Stefan Thomas, Ripple’s former chief technology officer, continues to support adoption of the XRP ecosystem. As reported by CoinDesk, he launched a public beta of Coil, a new blogging and content platform. Coil aims to enable publishers and creators to earn XRP. The platform’s goal is to provide open access with several payment and tipping options for content creators.
Price ambiguity for XRP
Price feeds from exchanges can vary, and the recent controversy surrounding Tether and Bitfinex has widened those differences. This divergence can make support and resistance zones appear inconsistent across charts, so it is important to note which platform is being used when evaluating XRP’s price. Here we can see how prices have diverged since April 25.
XRP hits critical supports and bounces, but can’t overcome resistances
As discussed in our latest technical analysis, XRP appeared poised to test critical support levels. It touched lows of $0.28 on XRPUSD and around 5,400 Satoshis on XRPBTC—precisely the zones identified as critical supports.
XRP managed a rebound from the $0.28 support only to fall back into the accumulation range. Importantly, it failed to reach the $0.33 level and slipped after brushing that resistance. As a result, the outlook for Ripple remains uncertain; trading opportunities are likely to be confined within this narrow range until a clear breakout occurs.
