- Dead For Five Days, Neighbours Notice Smell
- Regulations Stifle Innovators
- XRP Starts The Year On A Positive Note
XRParrot, the Netherlands-based XRP-fiat gateway exchange for European customers will cease operations, citing new regulatory requirements. Even more sadly for the exchange, launched and run by Ripple developer, Wietse Wind, is that few seem to have noticed.
DEAD FOR FIVE DAYS, NEIGHBOURS NOTICE SMELL
All joking aside, the XRParrot exchange, launched in February 2019 with funding from Ripple’s XSpring, achieved some impressive milestones.
By linking a Euro-bank account to their exchange account, customers were able to buy and sell XRP for very low transaction fees. In October last year, the exchange had reportedly converted over 1 million Euro into XRP, making it one of the most popular European XRP gateways.
At the time of its demise, XRParrot counted over 3000 active users.
REGULATIONS STIFLE INNOVATORS
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To ensure compliance with the new regulations, XRParrot would need to pay enormously increased costs for new licence and administration fees.
Hence, Wind took the decision to do a controlled ‘soft’ shutdown, making new orders unavailable, while informing users with accidental or automated orders that they would be processed for the last time.
Wind took to Twitter to explain his decision, and gratitude to XRParrot’s former users:
I am really grateful over 3000 individuals trusted my service, and proud that it has processed a crazy amount of transfers and XRP purchases for EU customers.
XRP STARTS THE YEAR ON A POSITIVE NOTE
Unlike the beleaguered XRParrot, XRP has started the year on a positive note. After languishing at under $0.20 for the second half of December, January has so far seen gains which have taken it within a whisper of $0.25.
And this could be just the beginning. If the current lawsuit in the US goes in Ripple’s favour and XRP is designated as a commodity, then some believe that the token will surge to over $500.
XRP could be in for downward movement as NVT Signal declines
Despite XRP‘s considerable gains this year, the cryptocurrency appears to be stuck in a decline since touching its yearly high of $0.35 earlier this month. After a 23% drop in the days that followed, XRP had a market value of $0.267, at the time of writing.
According to CoinMarketCap, XRP had a market capitalization of over $11.66 billion, while recording a 2.9% decline over the last 24-hours.
XRP 12-hour chart
Source: XRP/USD on TradingView
Towards the start of this month, XRP appeared to have entered a ‘head-and-shoulders’ formation. These patterns usually facilitate bearish outcomes and are an immediate sign that XRP could depreciate in the short-term.
At the time of writing, XRP had a market value of $0.267 and was testing the pattern’s neckline. The cryptocurrency saw relatively strong support at this level throughout the pattern, though this might be the time when XRP dips under it.
The EMA ribbon lines were moving above the price line, which generally means increased resistance at higher price levels for the short-term. The MACD also predicted bearish movements, having maintained its bearish crossover from earlier this month.
With the faster-moving average having dipped under the slower one and persistent bearish momentum in recent times, it is likely the cryptocurrency will break below the pattern in the next few days, which will probably find XRP at the $0.223 level in the week that follows.
The network value to transactions (NVT) ratio is a metric calculated by dividing the asset’s total market capitalization by its daily transaction volume. The NVT signal (NVTS) is derived from this, except instead of using daily transaction volume, a 90-day average is utilized. The metric had been rising since mid-December last year up until around a week ago. This is likely due to the 95% rise in XRP‘s value over the period.
However, data from CoinMetrics showed that the NVTS appeared to be declining, experiencing a 25.8% drop since 13 February. This likely means that the XRP network’s growth is declining and could see increased bearish pressure as the week progresses.
XRP will most probably face some downward movement in the coming days, especially considering bearish signals from the EMA ribbons and MACD. Further, the declining NVT signal also indicates price depreciation in the short-term. This likely means that the coin will break down from the pattern, touching the $0.223 level in the coming week.
XRP to Benefit from VeChain’s Partnership with Bitrue Exchange
VeChain has made an announcement about its major partnership with XRP-friendly Bitrue exchange .
The VeChain Foundation, a non-profit organization behind one of the leading blockchain platform, has joined forces with cryptocurrency exchange Bitrue through its strategic partner and advisor CREAM.
A slew of benefits for VeChain
As part of its strategic partnership with CREAM, Bitrue will list the VTHO token, which is needed for recording data on the VeThor blockchain. A VTHO/BTC pair will go live on Feb. 24. The token will be distributed on a weekly basis.
Bitrue will start supporting tokenized projects that are part of the VIP180 ecosystem. On top of that, Bitrue will also offer ‘exclusive benefits’ for X node holders.
Driving blockchain adoption
In its statement, CREAM claims that VeChain and XRP are both focused on developing enterprise-level use cases for blockchain technology. Bitrue was able to spot “the overlap” in these two projects, which prompted it to embrace VeChain in early 2019.
“Bitrue has been continually impressed by the growing adoption of the VeChainThor blockchain and appreciates the proactive approach that CREAM is taking to strengthen both the CREAMethod and VeChain ecosystem,” Curis Wang, CEO of Bitrue.
Bitrue is one of the most XRP-friendly exchanges. Back in December, it expanded the number of trading pairs with the third biggest cryptocurrency, bringing their total amount to 77.
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.