Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
XRP: Coin with Great Potential
Information is not investment advice
What is XRP?
XRP is the cryptocurrency based on Ripple, which is a blockchain-based digital payment network and protocol owned by Ripple Labs Inc.
Ripple is a digital payment network for financial transactions. It was created in 2012 by Chris Larsen and Jed McCaleb. Ripple's main process is a payment settlement asset exchange and remittance system, like the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing across currencies.
Ripple operates on an open-source and peer-to-peer decentralized platform that allows a seamless transfer of money in any form, whether it's dollars, yen, euros, or cryptocurrencies, like Litecoin or Bitcoin. Ripple is a global payments network and counts major banks and financial services amongst its customers. XRP coin is used in its products to facilitate quick conversion between different currencies.
Ripple vs SEC
When the U.S. Securities and Exchange Commission (SEC) filed its bombshell lawsuit against cryptocurrency innovator Ripple Labs in December 2020, it didn’t expect blowback. SEC claimed that Ripple Labs Inc. mislead investors about its XRP cryptocurrency. The SEC sued Ripple, co-founder Christian Larsen and Chief Executive Officer Bradley Garlinghouse in a “vacuum” that allowed them to sell XRP into a market with the limited information they chose to share. The agency alleges that the two men personally profited by about $600 million and ignored legal advice that the cryptocurrency could be considered an investment contract and therefore a security. It accused them of selling the virtual tokens without registering them as such.
SEC's main goal is to take control over the XRP coin and recognize it as a security. This process can affect the whole crypto market that’s why the community is watching it closely as Ripple victory would lead to a huge coin pump and the whole crypto market bullish sentiment.
XRP broke through the resistance line and facing new highs. Right now it is trading under two big resistance levels of $1.3 and $1.34. As soon as the price breaks through $1.34 a long trade might be opened. Targets are $1.45 and $1.6.
On the other hand, if Bitcoin reverses the $1.05 support level should be watched. In case XRP breaks it thought the price will drop immediately to $0.9 and $0.8.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.