On May 30, the Ripple price (XRP) reached a high of $0.474. A rapid decrease began the next day and the price reached a low of $0.40. After a gradual increase, the price began another downward move.
Will XRP stay above $0.4? Keep reading in order to find out.
Ripple Price (XRP): Trends and Highlights for June 4
- The price of XRP reached a high on May 30.
- It broke down from an ascending channel on Jun 4.
- There is bearish divergence developing in the RSI and the MACD.
- The price has made a possible double top pattern.
- There is resistance near $0.45.
- There is support near $0.37.
Ripple (XRP) in an Ascending Channel
The price broke down from the channel on Jun 4. The breakdown occurred with significant volume.
The Ripple (XRP) price briefly traded below $0.4 before rebounding.
Where will it go next? Let’s take a look at some technical indicators and try to answer.
In yesterday’s analysis, we stated that:
Both the RSI
Furthermore, it seems as if the price has created a double top, which is a bearish reversal pattern.
The use of these indicators makes it likely that the price will decrease. In the short-term, a breakdown from the ascending channel is likely.
As seen above, the breakdown from the ascending channel already occurred. However, the double top pattern took close to 15 days to materialize. Therefore, it is likely that this is not the end of the downward move.
One support area and one resistance area is traced for Ripple (XRP) below.
The closest support area is found near $0.37. If the double top pattern proves to be correct, the Ripple price (XRP) will eventually reach this area. The analysis of technical indicators supports this claim.
The closest resistance area is found near $0.45. A significant increase against the current trend would be required for the price to reach this area. Currently, there are no technical signs pointing towards this scenario. However, if the current daily candle closes above $0.415, it would create a hammer, which is a bullish reversal candlestick.
To conclude, the Ripple price (XRP) recently broke down from an ascending channel. Furthermore, it has created a double top pattern in long-term timeframes. This bearish reversal pattern, combined with the readings from technical indicators makes it likely that the price will decrease and eventually reach the support area outlined above.
ECB is far from making a decision on CBDC implementation
The ongoing trend of the ‘virtual economy’ has become increasingly popular over the last couple of years. To keep up with the crypto-explosion and Bitcoin’s popularity, central banks all over the world are now analyzing the idea behind the issuance of digital currencies. While this idea is still in the works, Yves Mersch, Vice-Chair of the Supervisory Board at the European Central Bank, is of the opinion that “it could affect the whole financial ecosystem and could wipe out the banking system.”
On the sidelines of the latest BAFT Global Annual Meeting, Mersch commented on CBDCs in an interview, stating,
“We are testing the different technological products to see what would be possible, what would be technically feasible for us, what would be legally feasible for us. And there is a huge variety of possibilities in Central Bank digital currency, which would have more or less revolutionary consequences.”
The ECB exec further argued the idea of a banking system wipeout, commented,
“Then: who will issue the economy with loans? If it is not the banks who have the deposits that they
Mersch also revealed that while the ECB has been assessing the space to increase knowledge from the technical and academic standpoint, the central bank is very far away from a political decision on any implementation.
Previously, the ECB had pointed out the shortcomings in terms of “speed, cost, and inclusiveness,” in existing retail payments, in a document titled ‘Innovation and its impact on the European retail payment landscape’. The report had expanded on ECB’s intentions to explore the potential of global stablecoins, while also revealing that the ECB plans to launch an ‘innovative and efficient’ payment solution, much like the Single Euro Payments Area [SEPA] for pan-European countries.The document said,
“The ECB will also continue to assess the costs and benefits of issuing a central bank digital currency [CBDC] that could ensure that the general public will remain able to use central bank money even if the use of physical cash eventually declines.”
Gemini Starts Insurance Company To Boost Cryptocurrency Coverage For $200M
Leading US cryptocurrency exchange and custodian, Gemini Trust Company, has taken a strategic step to provide robust coverage for the cryptocurrencies in its custody.
Gemini Takes An Extra Step
Owned by the Winklevoss twins, Cameron and Tyler, the exchange announced Thursday that it had launched its captive insurance firm, Nakamoto Ltd., to secure Gemini Custody, the company’s arm that stores customer’s digital assets, against theft.
This development now allows Gemini’s customers to purchase additional insurance coverage for their cryptocurrencies with the company’s traditional and captive insurer.
A captive insurer is an insurance division that is set up by companies as a way to provide coverage for business risks that are usually huge and impossible or expensive to insure with external insurance companies.
Nakamoto Ltd. is licensed by the Bermuda Monetary Authority (BMA) and is the world’s first captive to insure cryptocurrency custody as it provides insurance coverage for Gemini Custody of up to $200 million holdings, which is the largest in the world, according to the report.
More Trust Can Lead To Mass Adoption
It is no news that crypto
Traditional investors are not willing to throw their money into an industry where millions could go missing overnight unless, of course, there is a robust system to cover such risks.
Gemini believes that providing comprehensive insurance coverage for digital assets will attract more institutional investors as a lack of proper insurance is one of the barriers to mass adoption. Investors will be more open to crypto investments if they feel safe and protected from risks.
“Insurance is one of the last hurdles. In order for there to be mass adoption, the path forward is a regular, compliant exchange system that clients have become accustomed to in traditional finance,” Gemini’s head of risk, Yusuf Hussain, told Reuters in an interview.
Ethereum’s annual issuance hikes to 4.51% post-Ethereum Ice Age
It has been a good start to the year for Ethereum.
After registering minor hikes on 3rd and 6th January, the world’s 2nd largest crypto-asset recorded a significant pump on the 14th, recording a hike of 18.88 percent. The valuation pushed the price of Ethereum from $143 to $170 as major resistances at $150 and $154 were breached.
According to the latest Coinmetrics State of the Network report, the annual issuance percentage for ETH slumped to an all-time low at the end of December 2019. The decline was observed right before the implementation of the Ethereum Ice Age, a planned difficulty increase to make mining more strenuous.
Initially, the ice age was planned in order to incorporate a transition and encourage users to shift from ETH 1.0 to ETH 2.0. However, the plan failed after ETH 2.0 did not get launched by the
As observed in the chart above, after recording a drop to 3.45 percent in December 2019, the annual ETH issuance percentage climbed its way back to 4.56 percent.
However, the Ethereum ERC-721 tokens pictured a cooling-off period at the start of 2020 after pretty much dominating ERC-20 towards the end of 2019. The transaction count growth over a 7-day avg suffered a sharp slump, with ERC-20 tokens’ periodic depreciation continuing to unfold.
Previously, Ethereum’s ERC-2o tokens experienced a steep rise back in November, when over 3.7 million ERC-721 tokens were transferred in a single day. However, it is important to note that a majority of these transfers were associated with an ETH-based game, “Gods Unchained.”
Many people in the community have regularly discarded Ethereum’s valuation and position in the crypto-industry. However, some like Nate Maddrey, Senior Research Analyst at Coinmetrics, has recently noted that Ethereum could be undervalued, when compared to Bitcoin.