Ripple’s XRP is trading dangerously close to the $1 mark as cryptocurrencies in general slide lower, over increasing regulatory concerns towards this asset class, most notably in India where the government is planning to introduce a bill that could potentially ban private cryptos in the coming weeks. At the time of writing, XRP/USD is trading at around $1.04.
During the previous session, several news reports suggested that the Indian government is looking to discuss its crypto bill, which could potentially ban private cryptocurrencies, driving a panic selling among crypto investors in the country which accounts for a significant market share of traders in this space. This comes months after the original crypto bill was introduced but the government appeared to soften the stance towards digital currencies since then. However, more clarity would emerge in the coming weeks as the bill gets introduced in the winter session of the Indian Parliament.
On a positive note, however, Ripple’s cryptocurrency could enjoy some support over recent reports of the Pacific island nation of Palau partnering with the company to create its first national stablecoin. According to a recent statement put out by the company, Palau is expected to use the XRP Ledger (XRPL) to create a US dollar backed digital currency, with Ripple providing technical, business, design and policy support for the proposed stablecoin.
According to the official announcement, the first phase of the partnership will see the development of a cross-border payments strategy and the creation of a national digital currency, enabling the citizens of Palau to enjoy the benefits of digital transactions. A stablecoin backed by the US dollar could serve as an alternative to CBDC is a concept that is being explored by several leading countries around the world lately.
Another interesting development that can offer some support to the XRP crypto is how Ripple Labs’ Co-founder Jed McCalum, a known XRP Whale, has not sold off a single XRP in nearly three months now. Over the past few months, we have seen Caleb dump millions of dollars worth of XRP on a periodic basis but the last such move occurred on August 31. Reduced selling activity by a whale could indicate increased confidence in its potential and value even as it keeps the supply tight and supports the XRP price.
In the coming days, Ripple’s XRP could experience some volatility when CEO at Coinbase, Brian Armstrong, will participate in a fireside chat at the JP Morgan Crypto Economy Forum. Armstrong’s comments at the event will be in special focus given that the investment bank forecast a strong uptick in XRP’s adoption in a recent report if Ripple wins the lawsuit against the SEC.
XRP/USD Technical Analysis
Technical analysis of the H4 price chart of XRP/USD reveals a bearish bias among most moving averages along with the momentum indicator. However, the MACD points to some buying interest in the market as well.
Ripple’s XRP is holding well under the pivot point at $1.09 but is some way above the immediate support at $0.97. There’s a strong chance of the support level being tested unless the mood in the crypto market lifts back up again or some strong fundamentals power some buying action.