Malta-based Binance is in the news after it let slip an announcement about adding XRP-pegged tokens on its native Binance chain and Binance DEX on 3 October. Following the news breaking out, the Chief Executive Officer [CEO] of Binance, Changpeng Zhao, confirmed the leaked news, with the community being quick to respond to this development. On 10 October, Binance DEX announced the listing of XRP-BF2 [XRP]. The XRP/BNB pair will be made available for trading from the same day at 8.30 AM [UTC].
The DEX made this announcement through a blog that read,
“Binance DEX will list XRP-BF2(XRP) and open trading for a XRP/BNB trading pair at 2019/10/10 8:30 AM (UTC).”
XRP-BF2 will be pegged by actual XRP and Binance will enable conversion of XRP into XRP-BF2 through deposits and withdrawals. With the addition of XRP-BF2, the project aims to provide a token pegged with the third-largest coin, XRP, in order to trade on Binance DEX. This might lead to an increase in the interoperability between different token assets and add to the utility of Binance’s Decentralized exchange.
Binance and Binance DEX users will be able to access this token, which itself will serve the purpose of tracking the value of XRP. Binance DEX in its listing proposal mentions the primary use case would be for XRP to be transferable on Binance Chain and tradeable on its DEX. The current supply of XRP remains 10 million on Binance Chain and the project has claimed that it is not locking any amount. The BEP2 XRP will be mintable and the supply will resonate with the market demand.
“All the issued BEP2 XRP will be backed 1:1 by native XRP sitting in a publicly disclosed wallet that can be monitored by anyone at all times.”
The Binance wallet address holding the token was noted to be bnb1x0vv5l6u5c7vpl7c947uxmm0gfstpdhg93gxpt, while the address where 10 million XRP remain locked for BEP2 XRP was rJpj1Mv21gJzsbsVnkp1U4nqchZbmZ9pM5. The project also claims to provide updates about the reserve balances and total circulation from time-to-time.
XRP Positioned to See Major Downside Because of These Simple Factors
XRP’s recent price action has been lackluster to say the least, with its notable surge up to highs of $0.35 being met with significant resistance which, coupled with the bearishness seen across the aggregated crypto market, led it to see a notable retrace.
The cryptocurrency now appears to be in a precarious position, as it is currently caught within a bearish technical pattern that could lead it significantly lower in the near-term.
This, coupled with the fact that the crypto is expressing multiple bearish technical signs, seems to suggest that further losses could be imminent.
XRP Consolidates Around $0.27 as Analysts Eye a Bearish Head and Shoulders Pattern
At the time of writing, XRP is trading own over 1% at its current price of $0.27, which marks a notable decline from its weekly highs of $0.32 that were set earlier this week.
From this point, the crypto saw some choppy trading before moving up to highs of $0.31 on Wednesday, which is when the aggregated crypto market saw an intense selloff that was sparked by Bitcoin’s flash crash from $10,200 to $9,200.
Peter Brandt, a veteran trader and highly respected analyst, spoke about XRP in a recent tweet, explaining that it is a possibility that the crypto is forming a bearish head and shoulders top, which could lead it as low as $0.20 in the near-term.
“It will be interesting to see if this H&S top plays out. If so, the target would be .2071. This Tweet poses a possibility. This is not a prediction,” he explained while pointing to the chart seen below.
These Technical Factors Also Suggest Further Losses Could be Imminent
The bearish head and shoulders pattern Brandt references isn’t the only thing currently counting against XRP, as there is a myriad of other technical factors that suggest further losses could be imminent.
Cold Blooded Shiller – a prominent cryptocurrency analyst and trader – spoke about these factors in a recent tweet, pointing to growing resistance and its recently formed lower high as two of these factors.
“Isn’t XRP just the easiest HTF short right now? Weekly lower high. Weekly SFP. Weekly Resistance. What am I missing aside from pure hopium?”
It is probable that XRP’s price action will be somewhat dependent on that of Bitcoin, as any further BTC downside would likely confirm this bearishness and potentially lead XRP and other altcoins to see significantly further losses.
XRP Forecast and Analysis XRP/USD February 24 — 28, 2020
XRP/USD nd the trading week at the level of 0.2717 and continue to move within the correction and the downward channel. Moving averages indicate a bearish trend. However, prices broke through the area between the signal lines up, which indicates pressure from the bulls. At the moment, we should expect an attempt to start the development of the correction and test the support area near 0.2225. Where again we should expect a rebound and continued growth of the cryptocurrency in the region above the level of 0.5005.
XRP Forecast and Analysis XRP/USD February 24 — 28, 2020
An additional signal in favor of the growth of XRP/USD quotes in the current trading week February 24 — 28, 2020 will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the support area. Cancellation of the Ripple cryptocurrency growth option will be a fall and a breakdown of the 0.1505 area. This will indicate a breakdown of the support area and a continued decline in XRP/USD quotes with a target below the level of 0.1205. A confirmation of the growth of the cryptocurrency will be a breakdown of the resistance area and closing of quotations above the 0.3695 area, which will indicate a way out of the downward channel.
XRP Forecast and Analysis XRP/USD February 24 — 28, 2020 suggests an attempt to test the support level near the 0.2225 area. Where can we expect continued growth of quotations with a potential target at the level of 0.5005. An additional signal in favor of the fall of Ripple will be a test of the trend line on the relative strength index (RSI). The cancellation of the option to reduce cryptocurrency will be a breakdown of the area of 0.1505. This will indicate a continued decline with a target below the level of 0.1205.
50 Mln XRP Sent Between Large Crypto Exchanges, Japanese Bitbank Involved
Over the past two days, 50 mln XRP has been moved between three large trading platforms and the Japanese BitBank, which, some assume, may join a new ODL corridor soon
The XRPL Monitor bot has reported several massive XRP transactions that total 50 mln XRP ($13,790,820).
Ripple’s milestones in 2020 so far
This year, Ripple has already made a few major moves – Brad Garlinghouse mentioning a possible IPO this year (though later on he stated he was largely misunderstood) and Brad Garlinghouse getting featured in an interview with CNN’s Julia Chatterley for the second time. This may suggest that Ripple is the only crypto company so far that has been of interest outside the community.
However, as reported by U.Today earlier on Saturday, the head of Tron, Justin Sun, had also made it into the CNN studio for an interview.
Besides, recently it was revealed that Ripple had been included into top 100 cross-border payment companies.
50 mln moved – Binance, Huobi, Bitbank
Since XRP is one of the most popular cryptocurrencies, large transactions made with it attract a lot of public attention.
This time, XRPL Monitor has spotted four transfers totalling 50 mln XRP.
- Binance – Huobi
- Bithumb – Bithumb
- Bitbank – Bitbank
- Anonymous wallet – anonymous wallet
Image via Twitter
Earlier, it was reported that some believed Binance.US and Bitbank were trialling a new ODL corridor for transferring XRP.