Ripple (XRP) closed above $0.52 on Sunday and resumed its climb on Monday, May 6. Sentiment among market participants is positive as traders await Securities and Exchange Commission (SEC) response filing and XRP locked in Automated Market Maker (AMM) liquidity pools crosses 4.31 million.
Total XRP Locked in AMM
Ripple closed above $0.52 on Sunday. The altcoin resumed its upward trend on Monday, hitting a high of $0.53, at the time of writing. XRP is making steady progress towards its April 22 peak of $0.57. The altcoin faces resistance at $0.55, the 61.8% Fibonacci retracement level of the decline from April 9 top of $0.6431 to April 13 low of $0.4188.
The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line, combined with the recent crossover of MACD above the signal line, it supports XRP price recovery.
XRP/USDT 1-day chart
XRP price needs to close above $0.53, the 50% Fibonacci retracement level of the decline between April 9 and 13, to sustain its uptrend. A close below this level could invalidate the bullish thesis and XRP could dip to support at $0.4868, a level that acted as support on the weekly time frame.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.