Weekly Wrap-Up: Regulatory Obstacle, Ethereum Divergence of Price and Activity and xCurrent Low Adoption Levels

Weekly Wrap-Up: Regulatory Obstacle, Ethereum Divergence of Price and Activity and xCurrent Low Adoption Levels

Weekly Wrap Up

Latest Bitcoin News and Price Update

While much has been talked about price flip-flops and how the value of Bitcoin and various crypto assets—except Bitcoin Cash SV, the top performer in the top 10—has fallen to new lows, institutional grade investors are not fazed. In fact, from recent commentaries—example from Justin Schmidt, the head of Digital Asset Market at Goldman Sachs, megaliths in Wall Street think drastic fall of overall valuation should be building for the market as it shakes off weak hands and quells speculation. This, in turn, allows entry of high net-worth investors who then stabilize the market and bring order.

Despite this positive outlook, regulatory obstruction and to some degree misunderstanding is a huge obstacle and is part of the reason why Goldman Sachs with all their trillions are yet to offer custodial services—even if they admit is a foundational piece that the network must have.

Obviously, the hassle of maintaining private keys can be too overwhelming for ordinary investors and the lack thereof of institutional grade safe keeping hampers investment now that most have no faith that centralized exchanges aren’t robust to safe keep their stash thanks to several million dollar heists that have sent shockwaves across the market.

All they need is a time-tested corporation to adjust with time, comply with regulators and put in place measures allowing safe private keys storage now that Bitcoin and cryptocurrencies are emerging asset classes that can no longer be ignored.

BTC/USD Price Analysis

On the price side of things, BTC/USD is technically bullish. At spot prices, it is down eight percent and five percent in the last week and day but from candlestick arrangement alone, we expect to see further drawdown now that bears are in charge.

Note that, as mentioned in previous BTC/USD price analysis, the asset is trading within a clear bear breakout pattern and with a full bear bar closing below our previous support—now resistance level at $5,800, bulls need to muster enough momentum and erase last week’s losses if this bearish preview is to be invalidated.

Otherwise, if sellers persist and prices drop below $3,700—last week’s lows then odds are BTC/USD could print $3,000 or lower by end year. That will be catastrophic for the overall network performance as difficulty and hash rate will take a hit as miners switch off their rigs.

Latest Ripple News and Price Update

Perhaps the only hope for XRP and the asset coin holders is the widespread use of xRapid. The solution is one of the three which have been forwarded by Ripple to shape the world of bank transactions. On its part, xRapid is a low-cost liquidity solution of which XRP will be used as an on-demand liquidity tool.

The other widespread option in use by most banks plugged to the RippleNet is xCurrent—an enterprise level payment processing solution with an end to end tracking. This is what most banks make use ignoring xRapid which despite the shills XRP has been proven not to slash costs.

Now, there is a new upgrade of xCurrent and what is unique about it is that banks that upgrade to this Version 4 will have an option of integrating xRapid. This no doubt draws the comments of Jim Chauncey-Kelly, the Director of Talent Acquisition who said in an interview that Ripple was planning to merge all the three solutions into one formidable and easy to use the option called Convergence.

Though it is something that the community would like to see adopted, the uptake by banks is slow and frustrating. American Express and Santander are the only ones to upgrade and while they did they didn’t opt to use xRapid.

XRP/USD Price Analysis

XRP is still the second most valuable coin in the space with a market cap of $14.6 billion. Even with this level of liquidity, it is yet to shake off sellers. Like other assets, XRP/USD is struggling against sellers and a look at the charts indicate that bears are likely to cap gains, fuelling drawdowns and week over week losses.

So far, XRP/USD is down 12 percent in the last week and yet to break above 40 cents. In fact from candlestick arrangements, XRP/USD could drop below 35 cents nullifying our net bullish position ushering in bears that might drive prices towards 25 cents and even 15 cents by end year.

Ideally, what we would like to see are strong gains above 40 cents triggering the first wave of bulls with first targets at 60 cents—another resistance level which if broken could see XRP/USD expand to Sep highs of 80 cents.

Latest Ethereum News and Price Update

While it’s near natural for emphasis to be laid on price, there are other important metrics to watch especially for smart contracting and dApp development platform like Ethereum. There are many performance gauges out there like how active the community is and the number of commits as GitHub but what stands out is the number of transactions.

In Ethereum, that number has been steady despite falling market prices. This revelation not only points to increasing divergence between price and activity now that Ethereum follows the Metcalfe Network effect meaning there is a direct correlation between these two and prices should naturally increase reflecting activity.

But, that is not the case hinting to the fact that the market is generally apprehensive perhaps because of how Bitcoin Cash hard fork turned out to be more bloody than expected or because of delays in Casper and/other scalability solution implementation. Nonetheless, the market has a way of leveling out the playing field and the steeper the bear overshoot, the stronger the snap back.

ETH/USD Price Analysis

Back to the chart and the path of least resistance is visible: bears are in control. Although there were attempts of higher highs in lower time frames as bulls rejected prices below $100, odds are this meltdown is far from over.

Clearly, there is no incentive to fade such a strong bear market and as long as prices are stuck below $160, we might see further a drop below $100 towards $40 and even $2. The only time this preview will change is if bulls reject lower prices, build momentum in lower time frames and thrust prices above $130 and later $160.

All this should be accompanied by high trade volumes. When this prints, then we shall recommend longs with first targets at $5250 and later $300.

All Charts Courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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