“XRP Posed To Become Best Liquidity Vehicle for International Transfers”
Overly, fundamentals are likely to drive Ripple (XRP) prices up. This is despite their decentralization push and adding four more third party Validators. Investors are anxious to know the SEC position and how CoinBase shall react suppose SEC say XRP is a utility.
From The News
How Ripple is set to miss out if they don’t get that much needed stamp from the US Securities and Exchange Commission, the SEC. What many don’t understand is the level of endorsement behind such an approval.
It’s understandable that they have a signed agreement with FinCEN but FinCEN is after law adherence by payment providers against vices as money laundering and terrorist financing. Things like those, not investor protection which the SEC fronts. We have Ripple drumming their decentralization plans and announcing that they are in the second phase of their grand “Decentralization Plan”.
Brad Garlinghouse is even positive that their novel xRapid and XRP token would take center stage as most banks would be using it for value “teleportation”. Of course, this is grand and we want to see that. However, what we remain to see is if they will get that sought after listing from CoinBase. Last year alone, this US-based crypto-broker had $1 billion in revenue. Undoubtedly, listing at such a reputable and forward thinking platform will mean access to liquidity and spikes in XRP valuation.
From what we have seen, CoinBase base their listing on the decentralization filter which the SEC uses for crypto categorization. So far, the SEC is yet to comment about XRP being a utility but straight from SEC high ranking officials, Ethereum and Bitcoin are. This cloud of confusion is what brings some uncertainty on the long term value of XRP.
Ripple (XRP) Technical Analysis
All in all, there are some positive price action developments at key point of inflection. Firstly, the reaction at 45 cents, which by the way doubles up as previous resistance now support level is priceless. It can’t be emphasized enough in our analysis.
By all accounts, 45 cents is basically a divider and all that we need-if indeed XRP prices are turning the corner-is a bullish candlestick cementing this positive sentiment. To quantify, at the time of press, XRP is roughly six percent up on a week over week basis and nicely following through last week’s pin bar.
Secondly, should there be a revival of XRP prices at 45 cents and this week ends up bullish then we would have a clear three bar reversal pattern, the Evening Star. Historically, such patterns are classic reversal pattern and odds of XRP buys are often elevated.
From yesterday, we can conclude that volumes are increasing and it’s normal that July 3 prices didn’t fluctuate much like those of July 2. In fact this is normal after an explosion like we saw on July 2. So, in line with our overall bullish sentiment, we suggest buying on dips in lower time frames with stops at 45 cents and overall targets at 70 cents. On the other hand, risk-on traders can wait for XRP prices to edge past 55 cents before trading a break out and later loading up with every retracement in the 1 HR chart.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.