It was a bit of a rough trading session for the Cryptocurrencies including Ripple (XRP). The regulatory environment is tightening for digital currencies and many countries are taking a close look at their legality.
South Korea has been in particular focus this week as there is a chance they will ban trading cryptocurrencies on exchanges. Ripple (XRP) has been strong in this period amid reports there are a number of mainstream money transfer type companies looking to explore the use of the XRP token.
Yesterday it was announced that MoneyGram, an international remittance firm is partnering with Ripple to test the XRP token with their international transfers.
Can Support Hold Up?
The news sent Ripple (XRP) jumping higher. But as the day wore on we’ve seen a retrace back down to key support.
As it stands $1.65 is a big level for us. If we crack below in any meaningful way then the next downside target is looking to be closer to $1.00. However, this is now the fourth test of the 1.65 mark.
For the most part, the news is largely positive regarding the widespread adoption of the XRP token. It just so happens that the broader cryptocurrency market is getting pulled lower. Bitcoin (BTC), which is the market leader has been tracking lower over the last week and is also sitting on a larger support level at 13,000.
Relatively speaking, given the positive outlook, should the cryptocurrencies rally as a whole, Ripple (XRP) might be set to outperform. Something to consider, but just be aware of the volatility in the current environment.