The Binance cryptocurrency exchange has added XRP to the Binance futures platform. The XRP price has increased by more than 7.5 percent over the past four hours.
On January 6, the Binance exchange announced that it will offer futures trading with up to 75x leverage for the XRP/USD pair.
The XRP price increase occurred slightly prior to the announcement. This resembles insider trading, a practice that is illegal in the American stock exchange. Will XRP continue to increase? If so, how high will it go? Keep reading below if you are interested in finding out.#Binance Futures Launches $XRP / $USDT Perpetual Contract With Up to 75x Leveragehttps://t.co/nEeG63XIvg pic.twitter.com/XjxX3DnByH
— Binance (@binance) January 6, 2020
Current XRP Breakout
The XRP price broke down from the $0.21 support area on December 16. After making a low of $0.18 the next day, the price created a symmetrical triangle. Since the triangle is considered a continuation pattern and transpired after a downward move, a price breakdown initially seemed likely. However, the price broke out on January 6. At the time of writing, it was trading inside the $0.21 area, which now will likely act as resistance. Additionally, this area coincides with the 25-day moving average (MA).
Lack Of Volume
Looking closer at the hourly volume for the upward move, it was quite significant but subsided immediately afterward. The highest volume was recorded on the first hourly candle of the increase when the price was still below $0.20. Afterward, volume subsided considerably. What is interesting is that since the announcement, the XRP price has not increased at all — rather, it has created a small bearish candlestick.
This movement has numerous similarities to the downward movement of August 9. The price broke down from a symmetrical triangle. After the breakdown, the price initiated an upward move that retested the breakdown level. However, it was unsuccessful in moving above it and continued to make new lows.
Therefore, we could definitely see a retest of the $0.18 support area and possibly head lower. We do not believe the price is likely to move above $0.22 and stay there for a prolonged period of time.
To conclude, the XRP price initiated an upward move shortly before the Binance exchange announced the launch of XRP/USD leverage trading. We do not believe this movement is likely to last and expect the price to fall below $0.20 once more.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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