The bitcoin futures expired yesterday, and have been followed by a market rally that has seen bitcoin touch $6500. This rally has also seen the value of the Ripple (XRP) push up by over 9% and looks set to push higher. The question then arises, can Ripple (XRP) sustain above these prices?
Looking at current market dynamics, there is a good chance that Ripple (XRP) might actually trade higher.
The first reason that supports Ripple (XRP)’s upside move is unrelated to this crypto, and that’s bitcoin (BTC). There is no denying that bitcoin has a huge sway on the entire crypto market. When it rallies, the entire market follows. Now, bitcoin has bounced off the $5800 price level twice in the last 2 weeks. This makes this price level a very strong support, which means that if all factors remain unchanged, it’s unlikely to break lower, and that’s good for Ripple (XRP). Besides, there is the idea that if bitcoin drops below $5800, it will be delisted from the CME futures, further strengthening the $5800 support level. In essence, there is a good chance that it will only go up from this point on, and consequently Ripple (XRP) will rise too. Ripple (XRP) already looks set to break above the psychological $0.50, and that will mark the beginning of a gradual trend to the upside.
Ripple (XRP) is also getting support from the upcoming SBI news regarding. On the 18th of July, SBI will be opening its exchange to the general public. This is quite interesting for Ripple (XRP) because the exchange will have Ripple (XRP) as its primary cryptocurrency. This means that there could be a huge volumes surge in Ripple (XRP) in the about 2 weeks. Of course, this is supported by the fact that Japan is a huge crypto market and since SBI is Japanese, that’s where the volumes will come from. Then there is the strong connection that SBI has to the Japanese banking industry. Through its banking consortium, SBI controls over 80% of Japanese banks. This means that the possibility of Ripple (XRP) becoming the primary mode of value transfer in Japan is increasingly becoming real, and this will play a huge role in pushing up the value of this crypto to unprecedented levels in coming weeks.
On top of that, there is the increased usage of Ripple (XRP) by more banks across the globe. For instance, Santander group is already using XRP in Europe and other jurisdictions where it operates. Such news are likely to continue supporting Ripple (XRP) even as the rest of the crypto market slowly gains bullish momentum.
It won’t be surprising if Ripple (XRP) ends the month at over $0.70. It has the fundamentals to achieve this, bear power in the overall market is declining. If bitcoin ends the month at over $7500, Ripple (XRP) could easily cross the $1 mark in July. This may be the very last days of Ripple’s price decline.