Ripple weighs relocation to Japan, the UK or the United Arab Emirates

  • Ripple is considering moving to one of five countries with clear cryptocurrency regulations.
  • The CEO, Brad Garlinghouse, says that the blockchain company needs solid regulations to thrive.
  • XRP/USD bullish outlook to $0.30 will gain credence when the $0.26 hurdle is pulled back. 

The blockchain and cross-border payments company, Ripple Labs Inc. is reportedly preparing a shortlist containing countries it may relocate to in case regulations in the United States continue in uncertainty. Ripple has faced firsthand the impact of unclear regulations, especially with a class-action lawsuit against it in the courts.

According to the CEO of the San Francisco-based blockchain firm, Brad Garlinghouse, countries such as the United Arab Emirates, Switzerland, Japan, the United Kingdom and Singapore come on top of the list. He explained:

The common denominator between all of them is that their governments have created clarity about how they would regulate different digital assets, different cryptocurrencies.

Speaking in an interview with Bloomberg TV, Garlinghouse added that the United States is becoming an unfavorable environment due to the conflicting opinions regarding digital assets' status. The US regulatory authorities consistently differ on whether to refer to some cryptoassets as commodities, currencies, properties, or securities.

Regulation shouldn't be a guessing game.

Ripple is definitely a proud U.S. company and we'd like to stay in the U.S. if that was possible, but we also need regulatory clarity in order for us to invest and grow the business.

Garlinghouse also commented on the impact of the coronavirus. He argued that the pandemic was a "tailwind" to the crypto market mainly because governments and central banks globally are printing more cash bills. As a result, elements of inflation are kicking in while people look elsewhere for fiat alternatives.

Ripple facing the ultimate resistance before liftoff to $0.3

Recently, XRP revisited support at $0.24 but resumed the uptrend aiming for $0.3. The bullish action turned the 200 Simple Moving Average (SMA), 50 SMA and 100 SMA into support levels. XRP/USD struggled with the resistance at $0.25, as discussed before, and is currently approaching $0.26.

The Relative Strength Index (RSI) reinforces the bullish outlook by piercing into the overbought area. As soon as the seller congestion at $0.26 is pushed back, XRP will shift the focus to $0.30, attracting more buyers to join the market.

XRP/USD 4-hour chart

XRP/USD price chart

According to Santiment, on-chain activity has been on the rise within the Ripple network. For instance, both the volume and the 24-hour network active addresses metrics saw a consistent roll upwards from October 19.

Whenever volume and active addresses increase in tandem, XRP tends to shoot up. On the other hand, a decline in the two metrics tends to pull the value down. For now, the sharp rise might continue to support Ripple's anticipated rally to $0.3.

Ripple volume/active addresses chart

Ripple volume/new addresses chart

Looking at the other side of the picture

It is worth mentioning that if XRP/USD is rejected at $0.26 again, the fall from the resistance may be fatal. Note that the RSI is nearing the oversold, which means a reversal is not a farfetched idea. We can expect the 100 SMA, the 50 SMA, and the 200 SMA to absorb the selling pressure on the downside. Other levels to keep in mind include $0.24 and $0.22.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Solana price eyes a return to $120 as confidence in SOL fades

Solana price continues to face some strong technically and fundamentally bearish scenarios. In addition, concerns about Solana’s network stability and scalability remain. Those concerns continue to weigh in on the bearish price action ahead.

More Solana news

MATIC on the march to $3 but must hold this support zone or face strong selling pressure

MATIC price action has fallen below the rising wedge for the second time in January; the first occurrence was on January 8. The Kijun-Sen is the final support zone, and if it fails, MATIC could drop 20%. The recent fundamentals are bullish.

More Polygon news

Top 3 Price Prediction: Crypto market seems ready to rally

Bitcoin price continues to sit on top of the neckline of a head-and-shoulders pattern, generating anxiety amongst bulls and bears alike. Ethereum price is testing the daily Tenkan-Sen as a support zone that could turn into a higher low.

More Bitcoin news

Dogecoin liquidity deepens as DOGE goes live on Thorchain

Thorchain announced earlier today that the Dogecoin liquidity pool is live on the decentralized liquidity network. As on-chain activity would increase, the deep liquidity fuels a bullish narrative for Dogecoin price. 

More Dogecoin News

BTC eyes retest of $50,000

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Read full analysis