- Ripple prices consolidating inside Jan 22 high low
- Messari’s report place XRP market cap on the lens
- Transactional volumes low averaging 14 million
An analytic firm is questioning XRP’s market cap. Arguing that its market cap is inflated, Messari is now calling for indices to revise their XRP circulating supply assumptions. Meanwhile, our last XRP trade plans are valid. All in all, for bulls to remain in charge, then we must see sharp gains above 34 cents.
Ripple Price Analysis
Messari is questioning XRP’s market cap and whether there are 41 billion XRPs in circulation as they claim. In a report, the analytic firm said they “conducted extensive research into the health and legitimacy of the currently quoted XRP $XRP “market cap” available on third-party crypto data services and exchanges.” According to their estimates, the firm believed the actual XRP market cap is inflated by a whopping $6.1 billion.
In theory, this places the total XRP market cap at $6.755 billion down from $12.855 billion. To that end, Messari is urging indices as Bloomberg-Galaxy, MVIS Cryptocompare and Bitwise to downward revise their XRP total circulating supply quotes. They go on and request them not to use Ripple’s API until after there are disclosures from Ripple.
The company as we know has restrictions on XRP resale. By doing so, they will reflect the true liquidity of the network because “more than 99% of XRP trading volume appears to come from overseas, many of which are suspect of wash trading.”
There has been no reaction to Messari’s report. Prices are stable and consolidating within Jan 22 high low. Still, our last XRP/USD trade plan is valid. As long as prices range within the 78.6 percent and 50 percent Fibonacci retracement levels off Dec 2018 high low, sellers have an upper hand.
Our emphasis roots for bulls to build momentum and thrust prices above 35 cents. However, this depends on the direction of break-out off this accumulation. If there is a robust and high-volume close recouping losses of the past few days confirming the double bar bull reversal pattern of Jan 13-14, odds are XRP will rally. If not and XRP collapse below 30 cents, we may see panic selling heaping pressure on coin prices.
Our buy trigger is at 34 cents. For our trade plan to hold, we must see high- volume driving prices above this level. That means above average volumes exceeding 14 million and even 85 million of Jan 10. Only then will we expect a rally above 34 cents—Jan 14 highs and possibly 40 cents.