Will Ripple (XRP) Find Support Following UK Financial Conduct Authority (FCA) Clarification?
Today’s Ripple (XRP) News
That regulators must be involved, even if some exchanges are agitating for self-regulators, is true for digital assets to be mainstream.
Before the masses fully understand the benefits of censorship-resistant assets and the internet of value, powerful critics and politicians will continue poking holes, diluting what cryptocurrencies can actually do, in the game called diversion. The list of naysayers is long and include the likes of Warren Buffet, Nouriel Roubini and even Bill Gates.
As they are the face of the status quo, controlling billions of dollars, a change is expectedly hard for them to take. However, time is changing and in the ever-evolving financial space, the recent clarity from the UK’s Financial Conduct Authority (FCA), the main regulator in the UK, is precisely what the market required.
By clarifying that ETH, BTC, and XRP share the same attributes and are utility tokens, Ripple and XRP fans have the necessary ammunition to argue out their case. Note that the FCA, unlike most regulators, is free from the influence of politicians and their decisions are independent. Established in 2013, they are bankrolled from the fees charged on the more than 52,000 financial institutions they overlook.
In a boosting report, that the Ripple’s Global Head of Government Relations Michelle Bond captured, the FCA said:
“Tokens may have mixed features that may overlap with the above categories, or change over time. For example, Ether can be used as a means of ‘payment’ (exchange token) on the Ethereum platform, and can also be used to run applications (utility token). XRP has similar features.”
XRP/USD Price Analysis
1 XRP/USD =$0.2464 change ~ 2.46%
As of this writing, XRP is stable in the last day but down 5.4 percent week-to-date. All the same, prices are oscillating above the H1 2019 support line. From a top-down approach, that is bullish for XRP despite the obvious drawdown.
As mentioned in previous XRP/USD trade plans, it is imperative that XRP is maintained above 30 cents. That way, the main trend dictated by Sep 2018 bull bar will still hold and every low will technically be another buying opportunity with targets at 40 cents and later 80 cents.
Presently, the break below the main support trend line on Aug 7 and the subsequent confirmation of Aug 9 show that sellers, in the short term are in control. Unless otherwise, the best course of action for savvy traders is to take a neutral stand until after there is a sharp climb above 34 cents.
Accompanying this upswing must be high participation. As such, the breakout bar above (or below 30 cents effectively nullifying the bullish overview) 34 cents must be with high trading volumes above 50 million of July 10.
However, the high the trading volumes, the better. Gains above 34 cents will trigger bulls into action with the first target at 40 cents. On the reverse side, losses below 30 cents could see XRP falter to 20 cents or worse in coming days.
Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your due diligence.