Ripple Price Analysis – July 3

  • In a bullish trend, traders can buy low and sell high.
  • Ripple is above the  12-day EMA and the 26-day EMA indicating that the cryptoasset is rising.

Ripple, XRPUSD, CryptoCompare chartRipple Chart by TradingView

XRPUSD Medium-term Trend: Bearish

Supply Levels: $0.50, $0.51, $ 0.52

Demand levels: $0.48, $0.47, $0.46

Yesterday, July 2, Ripple  price was in a bearish trend. On July 2, the bulls took  price from the low of $0.45, and then to the high of $0.51. However, the bears brought price to the low of $0.49. The season of bearish pressure may soon be over as the bulls make another attempt. Meanwhile, the MACD line and the signal line are below the zero line which indicates a sell signal.

Also, the price bars of Ripple are above 12-day EMA and the 26-day EMA which indicates that the bearish trend is continuing.

XRPUSD Short-term Trend: Bullish

Ripple, XRPUSD, CryptoCompare chartRipple Chart by TradingView

On the 4-hour chart, the price of Ripple is in a bullish trend. The price bars of Ripple is above the 12-day EMA and the 26-day EMA indicating that the cryptoasset is rising. Meanwhile, the relative strength index period 14 is level 60 which indicates that price of  Ripple is in the bullish trend zone. In a bullish trend traders can buy low and sell high.

 

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Blockchain-Enabled Chinese Yuan Could Increase Governmental Oversight, Investor Argues

The Chinese government has been closely studying blockchain technology in order to determine whether the immutable distributed ledger can be used to streamline routine business processes.

However, Chinese authorities have expressed concerns regarding the use of cryptocurrencies in financing illicit activities and potentially disrupting the country’s $12 trillion economy by facilitating capital flight.

People’s Bank of China Considering Blockchain-Based Yuan

While China’s government has attempted to restrict transactions involving cryptocurrencies, the People’s Bank of China (PBoC) has reportedly been conducting research to determine the feasibility of launching a blockchain-based Chinese yuan (CNY) since 2014.

This, according to Dovey Wan, a founding partner at Primitive Ventures, a “market cycle agnostic” investment firm which has invested undisclosed amounts into various cryptoasset projects such as ZCash (ZEC) and DFINITY.

Wan, who earned her Masters in Information Systems from Carnegie Mellon University, wrote in a blog post published on CoinDesk on May 17, 2019 that the digital yuan, or Renminbi (RMB), initiative may potentially allow the Chinese government to exercise greater control over the nation’s local and international economy.

M0 Versus M2

As explained by Wan, digital fiat currencies allow financial institutions to more effectively create credit flows which increase M2, the broad money supply. Meanwhile, blockchain-based digital currencies impact a base currency measure, referred to as M0.

Blockchain-enabled digital currencies could potentially allow central banks to “bypass commercial banks” in order to directly control money creation and supply channels. This would structurally centralize the central financial institution’s power and role in formulating monetary policy, Wan argued.

Chinese Government Will Most Likely Use Permissioned Network

According to Wan, the PBoC is looking at various types of network design for a digital, blockchain-powered RMB. She believes that it will most likely be a permissioned network in which the nodes will be managed by major Chinese financial institutions, including the PBoC.

This indicates that transactions involving a digital yuan would only be seen by Chinese banks, and not the nation’s citizens.

Blockchain-Powered Currencies Enable “Better Coordination Paradigm”

One of the main reasons for using blockchain technology, Wan noted, is to take advantage of “a better coordination paradigm” when compared to “traditional currency supply management, which is heavily dependent on bookkeeping,” Wan wrote.

Moreover, Wan thinks blockchain’s immutable nature and private-key cryptography can prohibit users from entering fraudulent transactions and also prevent users from counterfeiting currency notes.

A blockchain-based yuan could also assist the Chinese government in more carefully monitoring the spending history of the nation's residents. This would allow the government to "accurately assess creditworthiness" and detect illegal activities such as money laundering and tax evasion, Wan noted.