Ripple has been on an absolute tear in December. As bitcoin (BTC/USD) stalls and retreats under 20K, XRP/USD has been a locomotive.
XRP/USD Daily Chart
- XRP/USD is a runaway train right now and has passed a critical milestone at $1.00.
- There is really no telling where this will go.
- The $2.00 might be the next target.
- Ripple is being implemented and is referred to as the "banker's bitcoin", which reflects negative opinion from the bitcoin-minimalist community.
- But wallstreet seems to like Ripple.
- Notice that the couple of consolidation periods have been each under a week.
- If we get another consolidation and it lasts more than a week, we might be in a significant period of consolidation.
- Refer to the consolidation from May to December before the current surge.
- In this consolidation, I think we should monitor the $1.00 area as support.
Why so Bullish in 2018?
I think XRP/USD will hold above $1.00. If price comes back to the 0.90-1.00 area, I believe there will be support and XRP could be a buy, with upside to at least $2.00. If it is under $0.50, I believe it would be a strong buy.
This optimism is not based on any standardized valuation method but on the fact that XRP already has one of the biggest network and the potential that it will be the digital currency of banks. There are a lot of competition so the bullishness is limited to 2018. Other protocols like Stellar Lumen (XLM) will also grow its network and begin to compete. Also, the space is constantly evolving so we will have to reassess again in January 2018.