We know about the Coinbase effect but you may not be aware of the Coinfield effect. That seems to be in play today with Ripple’s XRP 15% higher at $o.534, according to coinmarketcap.
Coinfield is a Canadian exchange that is using Ripple’s XRP as its base currency for 20 markets.
Anyone signing up as a client of Coinfield will receive 10 free XRP tokens.
XRP has broken free from its tight trading range around $0.44-0.46. The token has risen above the psychologically important 0.50 level to $0.53.
Ripple also revealed two days ago at the Global Islamic Economic Summit 2018 that it is setting up an office in Dubai. That too may have helped buoy the price.
Dubai is rapidly developing into something of a crypto hub in the Middle East.
Last week advisory and asset manager deVere Group announced at the launching of an active crypto fund domiciled in Dubai.
XRP/USD 4-hour chart
Ripple XRP technical analysis
XRP has strongly rejected $o.475 twice but that is now behind us. With strong support found at $0.425.
With the 100-day moving average (green) back above the 200-day MA for the first time since mid October, bulls will be cheering this morning for their patience.
Also, given the speed at which Coinbase is listing new tokens, some traders are also betting that XRP will be listed soon.
However, as you might expect on such a surge, XRP is now in overbought territory according to the the relative strength index indicator, as seen in the live chart below:
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane