3 Reasons Why Ripple Price Hovers Above $0.20

Ripple price started 2020 with a less catastrophic view that the year before. The price now hovers above $0.20, having stemmed from the recent outflows. Here are 3 reasons holding XRP price up right now. 

January 11, 2020, | AtoZ Markets – Ripple (XRP), which has been sliding slowly throughout 2019, has not given up on a bright future. But the market price has remained stagnant, hovering within a relatively limited range.

At the time of writing, Ripple price trades at $0.21. Trading is still cautious, as altcoins are viewed as less reliable. Added to this is the lack of confidence that XRP has ended dumping, and may go through a new price discovery stage.

But in January, the asset has a few factors keeping the price level-keeled at $0.20.

1# Siam commercial bank partners with Ripple Net

The Thailand-based bank, dedicated to offering fintech solutions for several Asian markets, believes Ripple Net can be the basis for a new app and payment system.

So far, Ripple has partnered with multiple banks, but the usage of actual XRP remains low. Still, the company is confident it can offer novel solutions to the legacy banking system, and influence the sector through last year’s acquisition of MoneyGram. The Siam Commercial Banking app will also help boost XRP exposure to its 6 million-strong user base.

2# $0.20 price level is Psychological support

The $0.20 level represents a key psychological support for XRP traders. In a world of wild crypto fluctuation, traders often rely on key levels to provide areas of support and resistance. The $0.20 price point has so far provided bullish traders with a strong foothold to push back towards $0.21 in recent weeks and could do so again if intraday bears take back control of the asset.

XRP is one predictable coin, with only minor fluctuations. At those prices, XRP also looks low enough to buy in and bet on future appreciation. At the same time, the coin has not slid sharply, and its holders don’t react to panic. Even during deep sell-offs, XRP is much less volatile and recovers close to its usual levels.

Hence, there are no pressures to abandon the $0.20 range, where small fluctuations may happen. XRP may have dreams of a much higher price range, and recently underwent a striking anomaly on Coinbase:

But those rogue orders won’t move the price, as XRP is viewed with caution. The coin has extremely stable volumes around $1.5 billion per day, and this also helps keep the current price range.

3# Ripple is in accumulation phase

The current Ripple price stability may be the beginning of an accumulation stage. XRP has stemmed the flow against BTC, and it looks like Ripple may be cooperating, by holding back from selling its coins unlocked from escrow. At these price levels, XRP futures markets are still very small and experimental. There are no interests in pumping XRP right now, and no selling pressures either.

The crypto market remains unpredictable, and BTC is also becoming more volatile, with the potential to sway altcoin prices. At the moment, however, XRP price looks like it may spend some time at its current range before finding a new direction.

What do you think about the current price level for XRP? Share your thoughts in the comments section below!

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