Ripple price (XRP) threatens to rotate lower in November

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Average daily XRP volume for the third quarter increased by more than 100% to $403.58 million
The XRP/USD price has not broken through the $0.26 resistance, although it traded above it this morning
A lower rotation is likely to follow when XRP/USD closes near its current level, as $0.2480 offers support

The ripple price (XRP) has not kept above $0.26, which is likely to lead to more selling pressure in the coming week.

Fundamental analysis: XRP volume increased by more than 100% in Q3.

Ripple released its Q3 report which stated that average daily XRP volume increased by more than 100% to $403.58 million in Q2 from $196.28 million, indicating a significant increase in network usage and increasing adoption of its on-demand liquidity payment (ODL) solution.

In addition, Ripple reported total XRP revenues of $35.84 million, up over 10% from $32.55 million. The company stated that it is fully focused on over-the-counter (OTC) sales and leasing to provide sufficient liquidity to certain ODL customers.

Ripple spent approximately 3 billion XRP for sale in the third quarter, of which 2.4 billion XRP found its way back into the deposit account. Ripple decided to freeze 55 billion XRP in an escrow account in December 2017 and put 1 billion XRP up for sale each month.

The crypto community has expressed concerns about this move several times in the past, believing it to be one of the reasons for XRP’s average performance, but Brad Garlinghouse, CEO of Ripple, and several other officials said Ripple did not have the power to control the price of XRP.

The company also introduced a new service credit line that allows RippleNet users to raise money when needed. In other words, users will be able to quickly raise capital in the form of XRP. The credit line is still in the beta phase and has only been made available to certain ODL customers.

To enable stable market growth, Ripple has repurchased large quantities of XRP, a move that Ripple says has triggered market growth and adjustment.

Technical analysis: XRP fails due to resistance

The XRP/USD price is trading about 1.5% lower today, despite the fact that ripple buyers gave a huge push earlier today to print a new 2-month high above the $0.26 mark. In the short term, this area hosts an important resistance zone consisting of the 200 DMA and horizontal resistance.

XRP/USD Daily Chart (TradingView)

A large declining daily candle in the making is likely to make XRP more vulnerable in the short term. A downward rotation is likely to follow as XRP/USD closes near its current level, as $0.2480 offers nearby support.

Summary

Ripple stated that its average daily XRP volume increased by more than 100% in the third quarter, while total XRP sales excluding purchases in the last quarter were $35.85 million, an increase of 10%.

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