XRP is giving signs of a significant price rebound as its backer, Ripple Labs, said that it plans to move out of the US.
The San Francisco-based blockchain company iterated via its co-founder Chris Larsen that it may shift to a crypto-friendly country – the UK, Switzerland, Japan, or Singapore – because of America’s enforcement-focused regulation on crypto and blockchain firms.
“The message is blockchain and digital currencies are not welcome in the US,” said Mr. Larsen. “You want to be in this business, you probably should be going somewhere else. To be honest with you, we’re even looking at relocating our headquarters to a much more friendly jurisdiction.”
The statement also came after a US court dismissed two out of three allegations against Ripple last week. The charges were a part of a class-action lawsuit, filed by Ripple’s investor Vladi Zakinov in November 2018. He alleged that the firm and its CEO Brad Garlinghouse sold them illegal securities in the form of XRP tokens.
Mr. Garlinghouse blamed the US Securities and Exchange Commission for its inability to clarify any concrete laws for blockchain firms. He added that Ripple is not trying to avoid rules by deciding to move abroad, but it merely wants to operate in an environment where regulations are clear.
Strongest internet companies built in the US, in part b/c of regulatory clarity. We have that opp with blockchain + digital assets. Responsible players like Ripple aren’t looking to avoid rules, we just want to operate in a jurisdiction where the rules are clear. #DCEA of 2020 https://t.co/LqbEDuMXvx
— Brad Garlinghouse (@bgarlinghouse) October 6, 2020
XRP’s first reaction to the news was positive. The fourth-largest cryptocurrency by market cap rose $0.0032, or 1.35 percent, to $0.249 on Wednesday. However, it failed to turn the upside into a full-fledged bullish move, correcting lower to $0.246 as of the time of this writing on Thursday.
XRPUSD is looking choppy amid the macro uncertainty. Source: TradingView.com
Vince Prince, an independent market analyst, stated in a note that he expects XRP to log a major rebound in the coming sessions. The point of bounce-back, he added, could be around $0.233-0.235.
“[XRP] has the preliminary support within the blue level marked in my chart [as shown below] between 0.2335-0.235 which is an important support to hold for XRPUSD before moving upward,” said Mr. Prince.
XRP price setup, as explained by Vince Prince. Source: TradingView.com
The analysis came as a part of a partial, inverse Head & Shoulder pattern. The $0.233-0.235 served as the bottom of the right shoulder. If sustained, it prompted the XRP price to rebound towards the neckline, which sits near $0.2604. Mr. Vince also anticipated a breakout move to the upside, adding:
“It will be interesting to see XRPUSD further development in the structure. And, in comparison to the rest market, this is a structure [that] has good potential.”