After consolidating under the $0.260 mark for a majority of last week, XRP’s price exhibited a growth of over 4 percent which improved its valuation to $0.265 on 14th Sept. XRP’s value underwent correction afterward and at press time, was valued at $0.257. However, short-term charts of XRP exhibited another positive outlook.
XRP 1-hour chart
Source: Trading View
On 14th Sept, XRP breached short term support at $0.255; the valuation tested resistance at $0.264 but did not surge past it. At press time, the price was declining but a descending channel pattern was forming in the charts. The price movement of XRP navigated within the channel formation but it was observed that the pattern was breached by a couple of fakeouts toward the downside. The real bullish breakout was yet to surface in the charts and it was expected to transpire in the next few days.
50-Moving Average also completed a bullish crossover with 100-Moving Average indicating a trend reversal toward the bulls.
XRP 4-hour chart
Source: Trading View
4-hour chart of XRP exhibited a similar pattern of a descending channel. A bullish breakout was indicated as trading volume also decreased in the charts, confirming validity of the pattern. Fibonacci retracement lines suggested that the price faced immediate resistance at $0.261, which should be easily breached during the bull surge. The long-term resistance at $0.2655 should be tested if higher bullish momentum comes into play.
However, Relative Strength Index appeared a little bearish as traders seem to exit the market at press time.
XRP’s price treaded positive patterns in the chart but few indicators suggested that the breakout will likely entertain a price hike. Resistance line at $0.260 should be re-tested but a positive breach was unlikely.
XRP Ripple Breaks Above $0.3000 while the US Senate Debates Crypto Security
The US Senate Debates 2020 Budget and Global Regulations:
In the meantime, across the ocean, in the United States, the Senate held a detailed analysis of the upcoming 2021 budget volume and at this event, the US Treasury Secretary Steven Mnuchin was asked by senior members in what manner will the United States Treasury increase the budget for the monitoring of suspicious cryptocurrency transactions as well as prosecuting terrorists and other criminal organizations that are financing illegal activities with cryptocurrency.
The Treasury Secretary quickly replied that they are close to rolling out several new requirements that are important to take place within the Financial Crimes Enforcement Network – FinCEN. He continued his statement by saying that they want to make sure that the technology development moves forward and what they want is to be sure of fact that cryptocurrencies are not used in the same practice as the Swiss secret bank accounts are.
Binance Futures has recently announced the release of the new BAT/USDT contracts that bare a leverage of 50X, these agreements will become active beginning with the 13th of February 2020 at 08:00 AM UTC.
OKEx the digital assets platform has recently launched the options trading feature for the BTC/USD pair which consists of a volume of $170 million within a uniform span of one month.
This monetary movement has placed the OKEx in second place after Derebit which, for the time being, is the largest BTC options platform.
Today the BTC/USD pair is currently trading in the vicinity of $10,200 and it went downwards by a neutralizing value of -1.40% at the same time analysts believe that the price needs to hold especially during the small pullback of $10,000 or it might risk a reverse movement on the chart.
The ETH/USD pair is trading next to $268 consequently going up by a confident value of +1.80% and the price faced some cooling in the session as it let out some steam, nonetheless, it will continue moving north.
A big astonishment today came from the XRP/USD pair which is now trading close to $0.3287 and it went skyward by a big value of +9.20%, XRP smashed with no effort the $0.3000 psychological mark.
As for the 100 most significant cryptocurrencies, the best of the day are HBAR trading in close to $0.069314 and going upwards by +64.53%, followed close up by CHZ which is trading in the proximity of $0.018062 and went upwards by +54.41%, continuing with THETA which is trading next to $0.157147 and it went upwards by a value of +21.73%. On the other side of the analysis chart the worst movements registered are as follows: NEM is trading next to $0.067643 going downwards by a value of -9.39%, MANA is trading close to $0.059672 and it is going downwards by a negative value of -8.31%, QNT is now trading low next to $4.61 and it went downwards by a value of -8.21%.
Industry Development and Crypto Security Features
Global news feature MouseBelt, the blockchain accelerator that has recently announced the incorporation of 11 new founding members into its Blockchain Education Alliance – BEC.
Mastercard, Ripple, Binance as well as senior representatives from Neo, KuCoin have banded together into scaling Matic Network. They will be joining the already existing 13 companies.
Notable security news headlines highlight Dexive as an innovative non-custodial and decentralized exchange that is impervious to any type of hacks. Dexive encapsulates a safety characteristic that halts malicious operators from hacking each peer individually.
One benefit is that it has no custody whatsoever of its users’ funds and all transactions are conducted on a peer-to-peer basis, this way the capital is retained by the user, not the exchange.
According to Japanese newspaper Nikkei, a new alliance is being formed in Japan and it includes mostly policymakers and they are led by Chairman Akira Amari, a senior member in the Japanese Liberal Democratic Party – LDP. The first act on order and debate is a proposal to urgent the Japanese government to begin arrangements for a new digital currency.
The legislators are already handling the legal framework of the new currency and the final proposal will be sent over to Prime Minister Shinzo Abe.
Will XRP Drop Further Beneath $0.28 and Head Toward 200-days EMA?
- XRP dropped by a sharp 9.3% over the past 24 hours of trading, bringing the price down to $0.028.
- The cryptocurrency reached resistance at $0.337 and rolled over to fall by a total of 16%.
XRP failed to overcome resistance at $0.337 this week which caused it to reverse and drop to the current level at $0.280. The cryptocurrency experienced a whipsaw like price movement as it broke above $0.30 to climb into the $0.337 resistance and then drop back beneath $0.30 again.
The latest price decline has now dropped the 30-day price increase for Ripple to a small 16%. This is far beneath the 46% price increase that ETH witnessed over the same period and marginally better than Bitcoin’s 11% price increase.
XRP/USD – Daily CHART – SHORT TERM
The daily chart above shows XRP climbing above the pivotal $0.30 level this week. It continued to climb further higher, breaking above strong resistance at $0.326 (bearish .382 Fib Retracement) until halting at resistance at $0.337.
It then went on to roll over as it plummetted back beneath $0.30. We can see that XRP is now finding support at $0.28, provided by a short term .5 Fib Retracement, however, the momentum has shifted toward the seller’s favor.
Short term prediction: NEUTRAL
XRP remains neutral at this moment in time after dropping back beneath $0.30. It would need to climb above $0.30 to turn bullish again.
If the sellers continue beneath $0.28, support is expected at $0.27, $0.268, and $0.264. The support at $0.264 is considered strong due to the fact that the 200-days EMA is here and it is further bolstered by a .618 Fib Retracement.
On the other hand, if the bulls can defend $0.28 and rebound higher, resistance lies at $0.29 and $0.30. Above this, additional resistance lies at $0.308, $0.3177, and $0.35.
The RSI has dropped beneath 50 as the bears take control over the market momentum.
Support: $0.28, $0.27, $0.268, $0.264, $0.26, $0.25, $0.243.
Resistance: $0.29, $0.30, $0.308, $0.3177, $0.326, $0.377.
BitMEX Announces Response Policy For Not Compensating For Loss Of Crypto XRP Futures
- BitMEX has announced its response policy in response to the “flashcard” of XRP/USD trading on February 14 this year.
- BitMEX users are large in the United States, Japan, and Asia, but this is since BitMEX is not a registered company in the areas where such requests are received.
- BitMEX may also be seeing traders asking the CFTC to investigate them to find damage from a large flash crash.
The world’s largest cryptocurrency derivatives exchange, BitMEX, has announced its response policy in response to the “flashcard” of XRP/USD trading on February 14 this year. Some users who had forcibly closed (cleared) their positions, flooded claims. Voices of the pursuit of responsibility were growing.
According to BitMEX,
” THE STOP LOSS PERFORMED BY SOME TRADERS WAS CONDUCTED AT THE ACTUAL LAST TRADING PRICE, NOT AT THE INDEX PRICE.” “AS A RESULT OF THE INVESTIGATION, THERE WAS NO PROBLEM WITH THE SYSTEM OR THE MECHANISM OF STOP-LOSS,” BITMEX ADDED
In response to solutions such as compensating for the money, the company also issued a statement saying that it will not roll back transactions or refund in any case.
“If BitMEX is a U.S. registered exchange, at least the CFTC will work, but not in this case,” said a lawyer well known in the Cryptocurrency area. BitMEX users are large in the United States, Japan, and Asia, but this is since BitMEX is not a registered company in the areas where such requests are received.
There was, in fact, even a case where the CFTC investigated BitMEX in July 2019, but the findings have not been released yet.
But on the other hand, Kraken, which is a U.S. exchange that occasionally sees flash crashes due to circuit breaks, reports that they have received a large number of subpoenas and search requests from the FBI throughout 2019. BitMEX may also be seeing traders asking the CFTC to investigate them to find damage from a large flash crash.
But Jake, the lawyer has known in the crypto area said, BitMEX does not have a legal entity in the United States of America, will comply with the CFTC investigation request with no obligation at all. Derivative giant Deribit had suffered a -15% flash crash last November, was taking steps to roll back the deal, and compensate for the loss.
In a flash crash on May 6, 2010, which shook the U.S. stock market, the S & P 500, Dow Jones, and Nasdaq Composite Indexes fell hard at 9% (about $ 1,000) in minutes. Five years later, the U.S. Department of Justice arrested British Navinder Singh Sarao, suspected of maneuvering a market and intentionally causing a flash crash in 2015.