When trading Xrp price GBP and any crypto and fiat currency pair, traders must have a thorough understanding of both currencies. One such commonly traded crypto and fiat currencies are the XRP/GBP pair.
As the leading and widely traded cryptocurrency, XRP (Ripple) plays a pivotal role in facilitating cross-border transactions. The crypto is traded on many exchanges, but if you don’t have sufficient experience of trading XRP against GBP, then things can go wrong for you.
In this article, learn more about XRP Price GBP currency and how to trade the XRP/GBP pair.
what to understand about trading this pair
As far as Xrp price GBP trading pair is concerned, it pairs XRP, Ripple’s native token, with UK’s fiat currency Sterling or GBP. XRP happens to be the 3rd largest crypto asset by market cap, whereas GBP is the 4th most traded global fiat currency. But XRP, when viewed in terms of the wider crypto market, is way more volatile in comparison to the GBP. Ripple (XRP) is essentially a platform that runs on blockchain technology and has three main pillars, including a currency, payment settlement, as well as exchange for digital assets.
Cryptocurrencies like XRP still record an average price movement of 4-8% daily. On the other hand, major traditional currencies, like the GBP, experience average volatility of around 0.4% daily. Thus, trading the XRP/GBP pair is more related to the swing in the price of the XRP than GBP.
Trading xrp and GBP
Like many other leading crypto assets, Ripple offers excellent money-making opportunities. The crypto is traded in over 100 markets as well as financial exchanges worldwide. However, before trading XRP, you must learn more about cryptocurrency. Once you have garnered much information about what impacts the price of XRP, you need to create a trading account on a reputed crypto/fiat exchange to be able to buy and sell XRP and GBP.
Also, note that trading crypto with fiat currency is much different when compared to trading fiat currencies. There is a major difference in the volatility of the crypto market, as well as the fiat forex market.
Thus, to trade the pair successfully, traders must familiarize themselves with both XRP, as well as the Ripple platform. They also need to assess the factors that impact fiat currencies, specifically GBP. It must be noted that XRP’s volatility dropped significantly during 2018, particularly beyond the 3rd quarter. During early 2018, XRP’s volatility on an average was over two times of Bitcoin, as well as Ether.
Xrp/GBP key technical points
So, if you are looking to open an XRP/GBP trade position, then you must focus on XRP’s price direction while minimal consideration must be given to GBP. Also, one of the main drivers of XRP, aside from the general sentiment about the crypto market, is the token’s volatility. Currently, the blockchain-based platform is gaining much traction and has been adopted by several financial services, as well as banking partners. This implies that when the volatility drops, an increased number of people will begin using XRP, pushing its price up.
CRYPTOCURRENCY TECHNICAL ANALYSIS – HOW TO TRADE XRP/GBP
The bulls pushed the price above the 20-day EMA on January 7, which was the first indication that the selling may have exhausted. The bulls sustained the price above the 20-day EMA till January 10 but could not launch the next leg of the up-move to £0.20.
That attracted profit booking from traders who may have purchased near the lows. The Xrp price GBP pair dipped below the 20-day EMA on January 12 but the long tail on the day’s candlestick suggests buying at lower levels.
Today, the bulls are attempting to push the price back above the 20-day EMA. If they succeed, the Xrp price GBP may rise to £0.30. If the Xrp price GBP turns down from this overhead resistance, the pair may remain range-bound for a few more days.
The flat moving averages and the RSI just below the midpoint indicates a balance between supply and demand. The longer the time spent in the range, the stronger will be the eventual breakout from it.
If the bulls can drive the price above £0.30, it will open up the possibility for a rally to £0.45. On the other hand, a break below £0.15 may resume the downtrend.