Summary:
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Ripple jumps substantially, a rise seems to be a delayed effect of the news about a new Ripple’s product
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MPs in the UK call the cryptocurrency industry ‘wild west’ exposing investors to a lot of risks
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Is it already time for Bitcoin to increase?
Tuesday turned out to be beneficial to Ripple investors as the price of the cryptocurrency surged despite a lack of similar momentum in other virtual coins. The amazing rally is hard to explain but it could have something to do with the news we were offered the day before. Namely Ripple is reportedly about to officially launch xRapid, a commercial application using the cryptocurrency XRP as a kind of a “bridge” between currencies and allowing payment providers as well as banks to process faster cross-border transactions. The product have been awaited by XRP holders for a long time. Note that XRP is one of the few digital assets which has experienced extremely intensified downward movements in the recent few months performing poorly especially against the US dollar and Bitcoin. Thus, the extreme short positioning along with the latest array of upbeat revelations may have encouraged more crypto investors to look at this cryptocurrency recognizing a possible buying opportunity. Finally let’s also add that on Tuesday some members of the Ripple community suggested that a massive development by Ripple was set to be announced in the near future. Note that these comments also sparked rumours about a potential Coinbase integration.
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Ripple witnessed the outstanding rally yesterday bouncing off the support placed in the vicinity of $0.26 (we did point at this level yesterday suggesting it could be a springboard for a bounce toward $0.3). Since then the cryptocurrency has seen a slight pullback toward $0.3 hence we cannot rule out a continuation of the ongoing move up to $0.35. Source: xStation5
We are keeping an eye on a topic regarding regulations of cryptocurrencies as it may bear far-reaching consequences for the entire industry. Today it is worth taking a closer look at the UK where MPs named the cryptocurrency industry ‘wild west’ exposing investors to a “litany of risks”. They agreed that the industry is in urgent need of regulations. The Treasury select committee wrote in a report that consumers were left unprotected from an unregulated industry that aided money laundering. In turn, the chair of the committee Nicky Morgan said “Bitcoin and other crypto-assets exists in the wild west industry of crypto-assets. This unregulated industry leaves investors facing numerous risks”. He also added that “Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury committee strongly believes that regulation should be introduced.”
Bitcoin is constantly moving nearby the lower bound of the triangle pattern and it was unable to make more sustained gains on the back of the surging XRP yesterday. However, the price of this cryptocurrency has not been able to break through its crucial support for several times, therefore buyers may understandably anticipate a more sizeable increase in the nearest future. If so, the price would march toward the upper bound of the triangle formation which would coincide with a move slightly above $6800. Source: xStation5
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