While the Ripple price stabilizes against both Bitcoin and the USD, Ripple Inc.’s CEO Brad Garlinghouse is “awed” by China.
China leads the U.S. in Crypto Regulation
He is convinced they are ahead of the U.S on matters regulation. It must be understood that Ripple has a pending court case. Also, the U.S. Securities and Exchange Commission (SEC) hasn’t classified XRP as a utility. Only Bitcoin (BTC) and Ethereum (ETH)–due to their level of decentralization, are utilities.
This means holders aren’t obliged to register like they would if these assets were securities.
Speaking during the Chamber of Digital Commerce’s Parallel Summit, Brad said:
“I think they’re realizing that some of these technologies may be very foundational for the future of how financial systems work, and they want to make sure that they have capabilities at the heart of them.”
“Today, because of the mining control of Bitcoin and Ether in China, these are technologies controlled by China. Twenty-five years ago the U.S. was a leader in making the internet what it is today, but part of that came from regulatory clarity.”
Christopher Giancarlo: XRP is not a security
Supporters of Ripple and XRP are positive that the third most valuable asset is not a security.
The former U.S. CFTC chair, Christopher Giancarlo, even penned an article explaining why he thought the coin was a utility. He assesses that XRP’s properties don’t sync with the classifying criteria of the Howey Test.
Still, the eventual classification of XRP as a utility largely depends on the pace at which lawmakers formulate laws.
Although trading cryptocurrencies (for the Renminbi) is illegal in China, the U.S. is far from banning crypto as an emerging scene. The country’s regulators are already earning revenue by imposing taxes on crypto capital gains.
Ripple price analysis
In the daily chart, immediate resistance is at $0.211, while support will be at $0.185. However, the 20-day moving average is providing support in the immediate term.
Since prices are trending inside the conspicuous bullish bar of July 8, 2020, bulls have an upper hand even as trading volumes taper from an effort versus result perspective.
Any close above $0.211 will open doors for $0.25 assuming the breakout is at the back of high trading volumes preferably exceeding the spike of July 9, 2020, of 26 million as per Bitfinex data.
On the reverse side, sellers will have the upper hand is the Ripple price fails to recover and close above $0.211. Dips below the 20-day moving average and $0.185 may build a case for a possible slide to $0.17.
Chart courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author. This is not investment advice. Do your research.