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- BitMEX announced a new perpetual swap that will be available on the XRP token (XRPUSD)
- Ripple broke the resistance level of $0.2700
- It also gained a new high for the year 2020 at $0.2760
Ripple Showcasing a Positive Price Rally
According to COIN360, the third largest crypto currency in the world Ripple price is gaining around 10.96% today.
The reason behind this strong rally in the price of XRP is connected to BitMEX’s launch of new perpetual swap on the XRP token.
From technical aspects
XRP is expected to continue the bullish wave. XRP also broke the resistance zones of $0.2520 and $0.2650 on the hourly chart of the XRP/USD pair. Currently, it is trading another breakout pattern with resistance near $0.2720.
If ripple continues to stay above the support level of $0.2700, it could extend its correction. Also if there is any downfall in the prices, the new support level can be around $0.2500 mark.
The RSI is currently rising and is well above the 60 level.The CCI also remains in the overbought zone which indicates that the bulls are strong for XRP.
From fundamental aspects
BitMEX is considered one of the most influential trading platforms in the crypto market and its Bitcoin swap has processed some $2 trillon worth of volume over its existence. Ripple is also expected to provide similar gains to its new swap.
On Aug 2, 2018, BitMEX launched a $ETH/USD swap. As you can see below, Ethereum immediately deviated from Bitcoin, plunging as BTC flatlined.
In a day or two, BitMEX is slated to release a swap for $XRP/USD. I wonder if something similar will happen this time around. pic.twitter.com/qbEL17aoae
— Nick Chong (@n1ckchong) February 4, 2020
Nick Chong, crypto analyst explained in a tweet that the recent gains in XRP are temporary pointing out towards a similar event happened. On August 2 2018, BitMEX released a product for ethereum allowing traders to bet against ETH’s performance against the U.S. dollar with high leverage, which resulted in the deviation of performance of ethereum and bitcoin. After a month of product launch, ethereum dipped around 27% whereas bitcoin was down 10%.
More observations after closer inspection of the charts:
Date of BitMEX ETH swap launch to bottom for Ethereum: -80%
Date of BitMEX ETH swap launch to bottom for Bitcoin: -60%I do realize there were other factors suppressing Ethereum: collapse of ICO boom, market cycles, etc.
— Nick Chong (@n1ckchong) February 4, 2020
According to analyst the launch of perpetual swap may bring a bearish wave for the XRP, he further added that there were other fundamental factors too that were pushing the price of ETH downwards at that time which included collapse of the ICO bubble and market forces that acted upon but many agree to the point that the new vehicle from BitMEX can impose a threat to the bullish XRP
It is suggested that somewhat a similar pattern can play out again as BitMEX’s launch of a swap product for XRP may cause the asset to create more volatility against bitcoin.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
