Connect with us

Sin categoría

Key Indicator Shows Ripple (XRP) Price Could be on the Verge of a Rally

Published

on

The majority of the Ripple (XRP) holders were waiting for the yearly Swell conference to bring some excitement to XRP price. However, the price didn’t move at all and Ripple is searching for annual lows on its USD pair. 

Crypto market daily performance

Crypto market daily performance. Source: Coin360

The question is, was it reasonable for investors to expect a vast rally before the Swell conference or should they have not expected any upward movement at all? Let’s look at the charts to see what XRP price might do in the future. 

Ripple remains in a year-long downtrend

There are some exciting things to be seen from the USD chart. The trend is quite clear and readers will notice that XRP price has continued to fall since the peak in January 2018. 

XRP USD 2-day chart

XRP USD 2-day chart. Source: TradingView

A downtrend is marked by lower highs and lower lows. Quite importantly, the price didn’t make any higher high since the peak in January 2018 and is still stuck in its downtrend. 

A positive is that  there is a remarkably healthy support level of around $0.30. It took nearly a year until the floor broke downwards and this breakdown occurred in August 2019. 

Since then, the XRP did make a few retests of this level and confirmed this level as resistance, which marked the continuation of the downward movements towards the next support area around $0.19 to $0.20.

Swell didn’t go so well

Another interesting phenomenon is the excitement of XRP investors around the time that the Swell Conference is meant to begin.

XRP USD 2-day chart

XRP USD 2-day chart. Source: TradingView

Quite remarkably, the 2-day chart provides clear data regarding the impact of the past three Swell conferences on XRP price. Each time there is a surge before the actual event occurs and the price drops the moment the event starts or finishes. Is this due to unsatisfied investors selling their tokens or are they simply playing the surge provided by the event?

What can be concluded from this chart is that it’s a classic example of the buy the rumor, sell the news concept. In this concept, there’s a surge before actual events (buy the rumor), caused by hype. However, when the actual event occurs, the price drops as the hype is going away (sell the news).

This phenomenon is seen on many levels and can also be found on the last Bitcoin (BTC) halving or the previous Litecoin (LTC) halvings. 

LTC USD 2-day chart

LTC USD 2-day chart. Source: TradingView

As shown by the LTC 2-day chart, and also with the halving in 2015, we can see a price run-up before the actual halving took place. This is simply another example of the ‘buy the rumor, sell the news’ concept, one of the unique phenomena which occurs in trading and investing. 

Ripple has nearly bottomed on the BTC pair

XRP BTC 2-day chart

XRP BTC 2-day chart. Source: TradingView

The XRP/BTC 2-day chart shows XRP price hovering on a vital support area (the green box). This area provided support and resistance levels for more than four years and is a level to watch closely.

Furthermore, the price broke out of a massive falling wedge construction and marked bullish divergences alongside it, which is often seen as a sign of a trend reversal. 

XRP BTC daily chart

XRP BTC daily chart. Source: TradingView

Currently, the daily chart is providing data that XRP price is in a crucial support area. This area is a previous order block and horizontal support zone that should be kept as support if the XRP wants to maintain bullish perspectives.

Alongside that, a potential falling wedge construction is found which is similar to the one seen on the left side of the chart. If the price can maintain this support and break to the upside, then a breakout towards 3700-3750 satoshis and possibly 4800-5000 satoshis is likely. 

The case of XRP price seeing a continuation to the upside is growing more likely according to the higher timeframes. 

XRP USD 4-day chart

XRP USD 4-day chart. Source: TradingView

The higher time frame charts (4-day in this example) are showing similar signals to prior bottom formations. The last time a bullish divergence occurred on the 4-day chart, the price surged 5,500% and 180%. 

A bullish divergence is not a guarantee of any price movements, but they are seen as one of the significant indicators for a potential trend reversal.

Ripple needs to break $0.30 to flip bullish

XRP USD daily chart

XRP USD daily chart. Source: TradingView

The crucial factor for Ripple is the need to break out of the falling wedge construction. Any bullish reversal will hinge on this happening. Furthermore, if the breakout occurs, XRP price needs to push above $0.30. 

The reasoning behind that is quite simple; the $.30 level used to be a support for a year. Through breaking that level, a potential higher high can be defined, and a new upwards trend can start. 

At the time of publishing, XRP price is still making lower highs and lower lows, so an upwards breakout is needed to speak of bullishness.

Looking forward

Holding XRP through the past two years didn’t bring a high return on investment as the price is down 93.45% since its all-time high. Does this mean that buying XRP would be a bad investment at this point? 

Not necessarily and many investors will remember a quote made famous by an 18th British nobleman named Baron Rothschild. Rothschild said, “Buy when there’s blood in the streets, even if the blood is your own.”

In that regard, if the price starts to make an uptrend, a crucial factor is a breakout of $0.30 to start an uptrend and to provide a better investment opportunity. If $0.20 to 0.21 can’t provide support, the next support level is at $0.15. 

News Source

Click to comment

Litecoin

Litecoin technical analysis: LTC/USD bearish flag structure spells potential trouble for the price

Published

on

  • Litecoin price is trading in the red in the session by some -0.35%. 
  • LTC/USD is moving within the narrowest conditions seen since late October. 
  • The price is running at its fourth consecutive week in the red. 

LTC/USD daily chart

Price action remains stuck consolidating within a bearish flag structure via the daily. 

LTC/USD 60-minute chart

Near-term price action has smashed out from an ascending channel formation via the 60-minute. 

Spot rate:                 45.51

Relative change:      -0.35%

High:                         45.83

Low:                          45.13

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Source: fxstreet

Continue Reading

Sin categoría

Digital euro to break the link between ECB and other banks – Cristine Lagarde

Published

on

  • The head of the ECB prefers to proceed with caution when it comes to digital assets.
  • The regulator is working on a supervision system for stablecoins.

The European Central Bank is working on digital currencies, but the launch of digital euro may be delayed due to systemic risks inherent to stablecoins. Such a message sent a new head of the European Central Bank Christine Lagarde.

She believes that the digital euro will change the transmission of monetary policy and affect the stability of the global financial system.

A stablecoin can break the central bank’s feedback with banks as they would no longer submit the reports. thus the regulator will be deprived of the ability to forecast and plan.

A central bank digital currency would allow citizens to use central bank money directly in their daily transactions. However, depending on its design, a central bank digital currency could pose risks. For instance, they could alter the way in which monetary policy is conducted and transmitted to the real economy. They could also carry implications for the functioning of the global financial system and its stability. The question of central bank digital currencies and their optimal design, therefore, warrants further analysis, – she said.

The head of the ECB proposed to conduct comprehensive tests of the banking system, by introducing blockchain in interbank transfers.

At the same time, Lagarde emphasized that the ECB was already cooperating with central banks and international bodies. The regulator also develops the supervision system for stablecoins that will reflect the peculiarities of new assets.

Earlier, the Finnish representative in the EU asked the ECB to consider the possibility of issuing its own digital currency.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

source:fxstreet.

Continue Reading

Sin categoría

Russia Poised to Issue Blanket Ban on Cryptocurrency Payments

Published

on

The government of Russia has been toying with the possibility of interfering in the country’s cryptocurrency space as of late. Several calls have been made for the country to completely legalize digital assets, but it would seem that the Kremlin isn’t prepared to have enough patience to deal with them at all.

BeInCrypto’s Russian news domain reported on the story earlier today, detailing how the Central Bank of Russia and financial monitoring watchdog, Rosfinmonitoring, are preparing to issue a blanket ban on digital payments.

The deputy head of the banking regulation department of Russia’s Ministry of Finance, Alexei Yakovlev, is spearheading the resistance. Yakovlev doesn’t see any use cases for Bitcoin to be used as a payment method, hence the need to curtail its growing use for making payments.

While the Russian Central Bank has refrained from making any official announcement on the matter, anonymous sources within the bank believe that such an initiative is welcome.

Russia Crypto

Cryptocurrency and a Growing Payments Market

In Russia, cryptocurrency payments have been growing, as a number of online stores, cafes, and bars are known to accept Bitcoin as a means of payment. The country also boasts a growing economy of remote workers that offer services to clients outside of its borders. These freelancers, like their counterparts, across the world, use Bitcoin as a means of eliminating insane fees from payment processors. In a world, where the government dictates how you spend your wealth, Bitcoin has proven to be the perfect asset for many.

The news is coming just weeks after the Russian government was reported to be looking into the possibility of seizing digital currencies suspected to be involved in criminal activity.

According to a report by local news medium RBC, several government agencies have been tasked with developing and enforcing procedures that would be used in carrying out these seizures. Agencies such as the Ministry of Internal Affairs, the Prosecutor General’s Office, and the Justice Ministry, among others, will come together with the assistance of the Russian Supreme Court.

Russia Bitcoin

Drawing Up Regulations

However, the implementation of these regulations won’t be easy. Speaking with RBC, Konstantin Golikov, co-owner and chief executive of the DailyRich platform explained that regulations will need to be made public in order for confiscation to work,  as crypto assets would need to be recognized as either cash or an equivalent.

“If law enforcement agencies begin to discuss the forfeiture of cryptocurrency, then, in fact, they are launching a mechanism for legalizing cryptocurrency on the territory of Russia. But, in my opinion, the Bank of Russia will seriously resist this,” stated Golikov. Perhaps this difficulty proved to be a herculean task for the government, as they are now seeking to ban the assets altogether.


News Source

Continue Reading
Open

Close