Ripple token slips on exchanges as bulls take profit after strong run
While only good news seems to have been escaping Ripple Labs of late, cryptocurrency investors gave a less-than-enthusiastic welcome to the announcement that three customers were about to deploy its xRapid money transfer platform live.
Having trialled xRapid for several months, three companies – MercuryFX, Cuallix and Catalyst Corporate Credit Union – signed up as clients for the live version on Monday, Ripple announced.
Yet, on Tuesday, XRP – RippleNet’s native token – was down more than 5%.
Let’s not be hasty in examining Tuesday’s gloom – XRP had an extraordinary September as Ripple announced success after success. During the month, XRP rose 67%.
XRP liquidity provided by exchanges
Ripple’s xRapid platform impressed many who trialled it, and has been partnered by several high-profile exchanges which will provide XRP liquidity for Ripple’s customers using the platform.
And perhaps that’s what is holding the token back on Tuesday. It was just announced that xRapid will tap into pools of existing XRP liquidity on participating exchanges – circumventing the need for customers to pre-load their accounts with the cryptocurrency.
“It is worth noting that financial institutions won’t have to hold XRP to complete transactions via xRapid. They will buy it from exchanges once needed,” explained Tanya Abrosimova at FXStreet.
On a technical basis, analysts noted some resistance at the $0.60 level, and after such a strong performance in September, the early days of October appear to be providing the perfect opportunity for speculative bulls to take profit.
Here’s how the top 10 cryptocurrencies by market capitalisation were shaping up on Tuesday morning at 11am [London time]:
- Bitcoin -0.2% at $6,598
- Ethereum -0.9% at $230.04
- Ripple -5.2% at $0.56
- Bitcoin cash +0.6% at $544.66
- Eos -0.1% at $5.66
- Stellar lumens -1.6% at $0.26
- Litecoin +0.2% at $60.99
- Tether unch at $1
- Cardano -1.4% at $0.08
- Monero -0.3% at $114.81