Today’s Ripple (XRP) News
By design, cryptocurrencies were made to reduce government control. It is through this realization that governments across the world are trying to regulate cryptocurrencies and blockchain in general. But it is not rocket science to see why they are trying to do this. Firstly, cryptocurrencies are global and as fiat competitors, they are better and immune to local politics. Secondly, by putting in place measures, they will have controls in place to efficiently collect taxes and even put in place necessary funds to expand digital currency by investing in crypto infrastructure.
Read: Mexico’s Attempt To Regulate Crypto Has Turned Into a Disaster, May Cripple the Economy
With the world shifting to cryptocurrency and adopting blockchain based solutions, regulations are maturing and now Mexico is planning to introduce their rules in a bid to regulate cryptocurrencies. Through the Official Gazette of the Federation, the Bank of Mexico issued a statement of their intent to implement laws that clarify their positions on cryptocurrencies.
Although we can glean from previous bills that the country may classify digital assets as property subject to taxation and not legal tender like government-issued fiat, there is a general consensus that despite the advantages presented by this burgeoning technology there is need to put in place regulations that foster development while not stifling innovation.
Also Read: South Korea’s Biggest Exchange BitHumb Will Slash Half of Its Staff as Bear Market Blues Strike Again
But it will be a delicate balance between efficacy and preventing total control. On one hand, proposed laws should not give governments strong hands to in a very short notice bar crypto-based transactions now that Mexico is a remittance hub and a region where Ripple Inc is working overtime to create payment corridors.
XRP/USD Price Analysis
At the time of press, Ripple (XRP) is trading within a tight trade range with caps at 4 cents. Although we are bullish on the third most valuable cryptocurrency, we also realize that the coin is under pressure and yet to breach and close above 34 cents, a key resistance level and a price tag of interest.
Unless otherwise, price action proves us wrong, we shall hold a neutral stand on XRP and the only time we shall execute long positions is when prices race above 34 cents at the back of high transaction volumes preferably exceeding those of Feb 24—61 million but most importantly above averages of 15 million.
Technically, that rally will be a confirmatory move complementing bulls of Jan29-30 as well as those of Feb 25—when CoinBase announced their listing—which is bullish from an effort versus results point to point of view. It is once prices close above 40 cents is when XRP bulls would have little upside resistance and would likely print above 60 cents by mid-Q2 2019.
Ripple price analysis: XRP/USD re-enters the $0.30-zone
- XRP/USD went up from $0.286 to $0.306 in the early hours of Wednesday.
- The Relative Strength Index (RSI) indicator has spiked into the overbought zone.
XRP/USD re-entered the $0.30 zone after having two heavily bullish days in a row. Over the last two days, Ripple has gone up from $0.261 to $0.306, charting a 17.24% growth in price. The four-hour chart shows us that XRP/USD went up from $0.281 to $0.306 within four hours.
XRP/USD daily chart
The previous two sessions have taken XRP/USD above the 20-day Bollinger Band, indicating that the price is overpriced. This shows that the bears will be stepping in any time soon to correct the price. The price is also trending above the 20-day Simple Moving Average (SMA 20) and SMA 50 curves. The Moving Average Convergence/Divergence (MACD) indicator shows increasing bullish momentum. The Relative Strength Index (RSI) indicator has spiked into the overbought zone.
XRP Skyrockets 12% as Crypto Markets Take Off
XRP has been one of the worst performing cryptocurrencies throughout the past several months, as it has been facing significant selling pressure that has forced it to trade around its 2018 lows throughout the first half of 2019, despite the positive price action seen in the aggregated crypto market.
Today, however, XRP has incurred a massive pump that has allowed it to erase much of its recent losses, and its price is now nearing a key level that previously proved to be a strong support region for the cryptocurrency.
XRP Pumps Towards $0.30 as Bulls Flex Their Strength
XRP’s pump came about after a long period of consolidation around $0.26, but it is important to note that it has so far been unable to break above $0.30, which may be its near-term resistance level.
Importantly, analysts believe that this latest pump is not an anomaly, and it may be emblematic of a shifting trend that will help lead the cryptocurrency significantly higher in the coming days and weeks.
Mitoshi Kaku, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that he is watching for the recent rally to be sustained on XRP’s daily chart in order to know whether this pump is truly the beginning of a trend shift.
“Time + Price. Powerful combination. No joke! Early move, I’d love a 1D confirmation for a sustained bull trend,” he explained while pointing to the below chart
Kaku is not alone in his bullish near-term assessment of XRP, as other analysts are also noting that there is a decent chance that XRP continues climbing higher in the coming days and weeks.
Crypto Thiel – another popular analyst – noted that the crypto is currently forming a buy signal on his indicator, which has historically been followed by massive upwards momentum that allows XRP to erase months of previous losses.
Assuming that XRP’s bulls are able to push it over $0.30, it is highly probable that it will significantly extend its upwards momentum and could put some significant distance between its recent lows of roughly $0.25.
Ripple’s XRP Eyes Relief Price Rally; Here’s Why
XRP was rising on Tuesday as investors flew out of the bitcoin market amid growing uncertainties regarding its safe-haven status.
The Ripple blockchain’s native asset climbed 1.73 percent to $0.00455 on BitFinex exchange. That brought its week-to-date gains up by more than 2.5 percent, providing one of the first signs of a relief price rally after months. XRP’s moves appeared the same against bitcoin, wherein the asset surged by as much as 4.49 percent against the benchmark cryptocurrency.
Ripple’s XRP looking to switch interim bias in favor of bulls | Image credits: TradingView.com
The surge occurred as market analysts awaited a plunge in the bitcoin dominance, triggered by fears that the cryptocurrency is not behaving like a safe-haven asset. As covered by NewsBTC earlier, Bitcoin remained cautious as drones attacked two Saudi Arabian crude oil production facilities on Saturday. The attack dwindled the world’s oil supply by 5 percent, sending the global stock market, including the benchmark S&P 500, down. As the equity markets plunged, long-time haven assets such as Gold, Treasuries, and the Japanese Yen surged. But bitcoin didn’t.
The mum approach prompted bitcoin traders to hedge into the altcoin market. In the last 48 hours, Ethereum climbed by as much as 6.72 percent against the US dollar – and 7.69 percent against bitcoin. The ETH/BTC instrument, as of now, is registering its four-day winning streak. The sentiment also breathed life into the XRP market, which, as renowned analyst Mohit Sorout noted, was trading in oversold territory for three months straight.
The Bitazu Capital partner said he now expects “a relief rally” in the XRP market.
But XRP’s interim upside action could live short, after all. The Next Web reports that Ripple’s core investor base is not happy with the way the blockchain project is developing. They think the San Francisco company is dumping XRP tokens, which has even led some disappointed ones to start a petition on Change.org, titled “Stop Ripple Dumping.”
“The only logical explanation is that Ripple is dumping on us. And not small amounts either – literally, billions. We have seen the reports of them disclosing this, so it’s a fact,” the petition reads. Over 3,500 signatories have shown support.
The petitioner cites Ripple’s financial reports as evidence. The Q2/2019 report shows that the firm sold $106.87 million and $144.64 million worth of XRP in direct institutional sales and programmatic sales, respectively. Meanwhile, the Q1/2019 data brings a similar picture – Ripple sold $890 million worth of XRP to fund institutions and support exchanges.
Meanwhile, the XRP/BTC instrument plunged by more than 70 percent.
Technical analysts, nevertheless, see XRP breaking out of its downtrend – against both the dollar and bitcoin. However, with Bakkt launching the first physically-settled bitcoin futures contracts next week, altcoins could see speculators driving back to the king cryptocurrency.
Bitcoin was down 0.65 percent against the dollar at the time of this writing.