Updated: 14:50 UTC+1, 2 Oct 2018 –Ripple Labs announced three more bank partnerships including Santander. RippleNet is now available commmercially.
Updated: 16:04 UTC+1, 1 Oct 2018 – XRP drops 8% to $0.549 as traders buy the rumour, sell the news.
Ripple Labs does philanthropy and lobbying just like a regular American company, but does it help the price of XRP?
In March it gave $29 million to public schools in the US and a couple of days ago we hear that Ripple is at the centre of the efforts of new crypto industry body called Securing America’s Internet of Value Coalition to push industry interests. It will be supported in its work by the Klein/Johnson lobbyists. The lobby group will be paid in XRP.
Ripple’s Chris Larsen explained the move in comments to Bloomberg:
“We understand this is really complicated, and there is a lot of misinformation out there. The good news is there is a lot of interest in this topic in D.C.”
Today sees an important event in Ripple’s calendar, with the Swell event opening. It starts at 11am PST and president Bill Clinton is the guest speaker. Be ready for some market-moving announcements.
By way of a run-up to that, Ripple announced its new multi-hop” product for cross-border payments. Siam Commercial Bank is already onboard. The company says lack of liquidity makes current systems in the Asean region particularly inefficient.
“With multi-hop, financial institutions can connect directly to SCB, which can settle and payout across the region without exchanging currencies multiple times and adding heavy fees. The result is a seamless payments experience into and out of the ASEAN region. For smaller financial institutions which previously did not have the ability to make payments into ASEAN, multi-hop will democratize access to those countries and make payments easier, regardless of payment size or their financial institution’s pool of liquidity.”
XRP/USD technical analysis (1 hour chart)
With XRP tripling in value in a matter of days, it is not too surprising that the momentum didn’t hold. Traders now have to contend with crossing channels.
A week view shows a bullish path back to $0.695, but a near-term bearish channel finding support at the 200-day moving average at $0.430. Since the 24th September XRP has seen strong selling volume.
With XRP sitting on its 50SMA at $0.584 there is strong overhead to test bulls this week, which is why they will need a helping hand from the Ripple team with some tasty announcements coming out of swell.
The last close below the 200-day SMA was back on 17 September, if we ignore brushing the line on Saturday 29th.
The relative strength index reading is 52, is in the not-too-hot not-too-cold zone, so that will provide some comfort for bulls ready to test the high of $0.695 on 21 September. Near-term high could be curtailed at $0.623 (dashed purple line).
Conversely however, if nothing much emerges by way of product launches or future plans and deals from the Swell event, then be ready to test resistance at 0.53, where the 50 day and 200-day SMA converge.
Probably worth mentioning also that “the flippening” is upon us again. With ETH and XRP both on $23 billion market cap, ETH is ahead by a mere $400 million. XRP could be number 2 by tomorrow or later today.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane