- Ripple is naturally grinding towards an IPO but experts say the move could hurt XRP massively.
- Ripple price forced closer to the immediate support at $0.27 but a falling wedge pattern hints another rally to $0.35.
As the week grinds toa halt, cryptocurrencies are rolling in a positive direction. The positive resonation comes after a couple of days that saw bulls paralyzed in the cryptocurrency market. Both the Asian and European sessions on Friday have been characterized by broad-based gains. All the top three cryptocurrencies Bitcoin Ethereum and Ripple are trading significantly higher than the weekly lows. Bitcoin price is doddering at $9,690 after resuming the uptrend from the previous low at $9,300. Ethereum has stepped closer to the resistance at $265 but adjusted to $260.
Ripple price, on the other hand, is trading at $0.2745 after surging a subtle 1.25% on the day. The price has advanced from $0.26 (weekly lows). An intraday high has been established at $0.2786. The trend prevailing is bullish but the low volatility level suggests that action towards the weekend session could be drab and sideways.
Crypto industry overview: Ripple enters the fight against cryptocurrency scams
Ripple as a company has committed to helping users within its network win the war against the ever-growing cryptocurrency scams. A portal has been launched to receive requests from users who meet suspicious activities related to the XRP Ledger. Some of the activities to be reported will include theft, phishing attempts, fake giveaways, suspicious crypto exchanges, transactions that are unauthorized, money laundering activities and other financial related crimes.
Looking forward, Ripple said that it will use its resources to carry out investigations, however, the company will not make the victims whole by reversing the transactions. The move is expected to bring some sanity to the crypto industry especially when it comes to the loss of funds through scams and illegal activities. Users within the network will also feel some sense of security that Ripple is looking out for their interest. The move could eventually increase demand for XRP as more investors look for security and accountability with the funds they invest.
Ripple's possible IPO could harm XRP
Ripple is likely to join the race towards becoming a publicly traded entity in the next 12 months. Brad Garlinghouse, Ripple’s CEO has not confirmed the rumor per se, however, he agrees Ripple prefers “to be on the leading side.”
In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.
While Ripple's growth as a company is leading it naturally towards an IPO, experts argue that the move could be harmful to the XRP token. One analyst, Rakesh Upadhyay says that since Ripple is yet to make diverse inroads in the “global money transfer system in a major way,” participants in the IPO could soon seek results, in turn, hurting the XRP price. Moreover, the head of markets at Cointelegraph, Allen Scott believes that an IPO will be bad not just for Ripple but also for XRP.
Many see Ripple selling XRP regularly as a recurring ‘IPO’ already sans shareholder rights. So this might actually hurt Ripple — it would put into question not only its operational costs and business model of dumping on the market but more importantly, the existence of XRP.
Ripple price forecast: XRP/USD temporally setback, $0.35 still in sight
Ripple closed last week trading close to the yearly highs at $0.3464. However, that seems to have marked the end of the rally that started at the beginning of the year. Losses were mostly unstoppable at several tentative support areas at $0.32, $0.30, and $0.28. However, XRP/USD met an avalanche of buying pressure at $0.26, culminating in a recovery that has seen it rise above $0.27.
The upside is limited at the 23.6% Fibo level taken from the last high at $0.3464 to a low at $0.26085. Forming a confluence in the same $0.28 zone is the 50SMA on the 1-hour chart. Since the resistance at $0.28 has been tested to Friday, there is a possibility of the price sticking closer to the immediate support at $0.27. Further breakdown is expected to find support at the major trendline (dotted) and the weekly low at $0.26085.
In terms of recovery, the formation of a falling wedge pattern hints that the losses suffered are just but a temporary setback and Ripple price could soon be on a trajectory back to $0.35.
Read more: Cryptocurrency Market Update: Hostility ousted as Bitcoin, Ethereum and Ripple make blissful moves
XRP/USD 1-hour chart
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