The Ripple price could be recoiling after bullish attempts of early last week. Even so, there are fundamentals that could buoy bulls in the next few weeks.
Kraken Becomes a U.S. Bank
Chief is the crypto bullish news from the United States that not only will national banks and savings cooperative custody digital assets but as soon as next week, there will be a framework in place, guiding banks on how they can.
Accompanying this is last week’s news that Kraken, one of the largest crypto exchanges in the globe, received a charter in Wyoming qualifying it as a U.S. bank. As it is, this will be strategic, a bullish move for crypto and a recognition that despite the mistrusts, cryptocurrencies contribute positively to the economy.
With this, Kraken, which will operate as Kraken Financial, will be part of the many crypto firms benefiting from the streamlining framework which eliminates red tape, ease expansion across states, and most importantly, significantly slash down the cost of compliance.
The Quest for Compliance
It is through compliance that XRP, the enabling asset which is core for the success of the On-Demand Liquidity solution, rides on and explains the heavy leaning by Ripple’s executive.
Without proper regulation enabling banks and financial institutions in general from adopting approved solutions which are cost effective, faster, and efficient, Ripple’s objective of rolling out a remittance solution serving the needs of banks and users will stall.
Ripple Price Analysis
At press time, the Ripple price was changing hands at $0.245, trailing both ETH and BTC in the last trading week. The only positive is their marginal gain versus USD.
Zooming in to the daily chart, candlestick arrangements suggest weakness. Of note, the XRP price is still trending within a downtrend with a negative gradient. Notably, bulls failed to close above the middle BB despite the series of higher highs as prices bounced off the lower BB, hinting of bulls, a prospect which was quickly squashed.
The rejection of higher prices was from around Sep 5 highs, an indication that bears may be in the driving seat. Since bulls failed to reverse losses of Sep 5 despite consolidating within its trade range for over 10 days, sellers are likely in the control as gleaned from an effort versus result analysis.
As such, even high should be a liquidating opportunity for aggressive traders and more so if yesterday’s losses are confirmed after today’s close.
A dip below Sep 6 lows of $0.23 could spark further losses to $0.20, or worse $0.16 in the medium term.
Chart courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author. This is not investment advice. Do your research.
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