Main Coin Weekly Wrap up: XRP/USD is Bullish as BTC/USD and ETH/USD Remain Flat despite Gains


Weekly Wrap-Up

Despite solid fundamentals as cross chain and interoperability capability at EOS and Ethereum via BancorX and news of tax breaks for French crypto traders, the market is literally flat but BTC/USD could break above $7,200 now that prices are above the main resistance trend line. At the same time, XRP/USD is bullish and it is likely that bulls will retest 80 cents by Dec 2018.

Let’s have a look at these charts:

Latest Ripple News and Price Update

With Emmanuel Macron at the helm, blockchain startup and cryptocurrency traders might end up enjoying lower tax rates on their digital asset capital gains from January 1, 2019. But that depends on whether the upper and lower house of the country’s legislators will give a stamp of approval to the later amendment of their tax bill that will see capital gain taxes decrease from 36 percent to 30 percent. This is definitely a step in the right direction especially for Macron’s Business Growth and Transformation bill (PACTE). This is a drive by the president to make France’s regulatory and legal environment-friendly for businesses and it appears as if the proposal to drive taxes lower is one of the many policies that would foster business growth in one of Europe’s top economies.

As France proposes tax cuts, the SEC will make history if it goes ahead and approves any of the nine Bitcoin ETFs that has been tabled by different firms. Any time from now, the SEC could announce their decision on whether Bitcoin ETFs are fitting for US investors or not and it’s along this line that Gabor Gurbacs, the director of Digital Assets Strategy at VanEck is advising the regulator to be careful on their ruling saying they have a chance to completely regulate the market with this ETF.

It’s easy to agree with Gurbacs because, with Bitcoin ETFs, there is an easy avenue for institutional level investors to make their way to Bitcoin through securities. These securities are under the oversight of the SEC meaning firms that have the listing nod have solid plans in place to protect the consumer and reduce third-party risks.

BTC/USD Price Analysis

Back to the chart and prices are almost stagnant. While it is overly positive for BTC/USD to be trading above $6,000 it will be perfect if there are solid moves above $7,200 triggering bulls. That is yet to print but since we have a whole bar closing above the main resistance trend line connecting the last 10 months high printing at the back of last week’s bull bar which is also inside week ending Oct 21 high low, bulls appear to be in charge. In that case, we shall retain a bullish outlook but will recommend buys when there are solid gains above $6,800-$7,000 resistance zone.

Latest Ethereum News and Price Update

News of BancorX launch was dominant this way and in a good way. In a market that is mainly driven by retail traders who instead depending on their emotions hence the hype element, there should be many liquidity channels for the market to thrive. That is exactly what BancorX is trying to do. Not only will we see traders exchanging their EOS and ERC tokens without going through exchanges, but there will also be more security because this cross-chain swap won’t involve the exchange of keys.

Instead, what we have is an efficient, cost-effective and interoperable system that encourage across the board adoption of blockchain based solutions. As a matter of fact, this is a small step towards the elimination of centralized exchanges and it is something similar with atomic and submarine swaps which Bitcoin and Litecoin networks are experimenting on.

BancorX is just a drop of the many possibilities that the world’s supercomputer can do. And this has been confirmed by Eric Schmidt, the former chairperson of Google and who is a billionaire, who said Ethereum could be this one powerful platform whose untapped potential are off the charts.

While talking to Tyler Cowen said the Ethereum is technically underrated and with exciting development happening in Ethereum, it could end up revolutionizing businesses and society.

ETH/USD Price Analysis

Though ETH/USD is up six percent in the last week, positive fundamental development is yet to filter through and ETH/USD is basically under consolidation in the weekly chart.

Like in our last ETH/USD price analysis, we shall maintain a bearish outlook only changing our outlook if prices rally above $250 or $300 reversing losses of the week ending Sep 9 OR dropping below $160 in a bear break out pattern confirming losses of early Aug.

Before any of these trading conditions are met, we suggest taking a neutral stand going forward.

Latest Ripple News and Price Update

Aside from forging useful partnerships with key players in banking, Ripple—the company pushing for mass adoption of XRP and their software solutions are also always improving their Ledger. Already, their decentralization strategy is paying off and with third-party validators, Ripple no longer holds majority control in their Unique Node List. The release of a new XRP Tool Kit improves user experience as efficiency and speed is increased that to the seamless access to the ledger allowing market users to extract all form of information they would want.

Besides, it improves XRP transactions because users can prepare, sign and submit transactions via a hardware wallet and web browser.  This versatility and ease of use will no doubt allow experimentation as users curious of XRP and blockchain, in general, can view the content of the ledger through an easy to use and free toolkit.

As users experiment, XRP coin owners can now deposit their stash at Cred—a lender that recently got access to a $300 million facility allowing them to accept digital assets as BTC and ETH as collateral.

XRP/USD Price Analysis

Price wise and XRP/USD is up 10 percent in the last week and could print higher in days ahead. It’s easy to see why. Not only is our last trade plan valid and trading in line with the week ending Sep 23 bullish break out pattern but the rejection of lower lows above 40 cents points to underlying bulls.

But, that’s not all, this week is closing higher after the last two weeks accumulation and confirmation of Oct 15 surges. As such, aggressive traders can begin buying at spot with spots at 50 cents while conservative traders can wait for rallies above 55 cents with first targets at 80 cents and later $1.

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.