Ripple (XRP) Can Rise if the Dollar Falls and BTC Correction Will Goes on

Ripple (XRP) Can Rise if the Dollar Falls and BTC Correction Will Goes on

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As a result of several events of global significance, multidirectional movements are rising in the markets.

After Biden’s victory, Trump became a lame duck, so the dollar is falling. Bitcoin has also stopped in growth and is declining. According to experts, this correction is associated with the message of successful testing of the COVID-19 vaccine. The cryptocurrency market is expected to show activity in relation to other cryptocurrencies, including the fourth-largest cryptocurrency XRP.

Global information resource The Block analyzed the financial report for the third quarter of 2020 published by Ripple. It states that the company has made a buyback of XRP coins from the market in the amount of more than $46 million. According to The Block, this was done to increase investor interest in XRP, and also to promote Ripple’s flagship product, ODL (On-Demand Liquidity), which makes cross-border payments convenient and cheap. The Block also suggests that XRP buybacks will continue and this will push the coin’s value up.

Analysts estimate that XRP’s profitability has been 4,243% since its listing on exchanges. The coin’s all-time high was in January 2018, when the cryptocurrency market was booming. Then the XRP price was $3.74. Ripple is now worth $0.255. Analysts do not rule out that as a result of Ripple’s buyback actions, XRP may return to its all-time high. In this case, the coin will again take third place in the Coinmarketcap rankings, pushing aside the stablecoin Tether (USDT).

The outlook for XRP growth in the long term is favorable. But it has been noted early that technical analysis reflects poorly the dynamics of this cryptocurrency. Its price depends to a large extent on the actions of the company itself and other fundamental factors such as new partnerships. In addition, XRP as an important component of the crypto market depends on market conditions.

Now a situation has arisen when a significant part of the investors’ funds was taken by bitcoin. Bitcoin Dominance is 64.2%. Since mid-September, this figure has grown by more than 13%, from 56.67%. In 7 months, BTC has grown by more than 300%. The fall of the US dollar also works to support it. However, in general, bitcoin as the oldest cryptocurrency is increasingly perceived by investors as a less reliable asset than other cryptocurrencies, including XRP.

XRP has been trading in the $0.2325 – $0.2589 corridor since September 2020. The asset is now at the ceiling of this corridor. And it is quite possible that XRP will break up this level. The next resistance level is $0.326. This promises investors a return of almost 26%. However, it is worth remembering that XRP rates are not always accurately predicted by technical analysis.