The Indian government announced a potential ban on cryptocurrencies. It also plans to introduce a digital currency sponsored by the Reserve Bank of India (RBI). India announced it wants to reign in unregulated cryptocurrencies but leave enough room for experimentation. The extend of the impact on cryptocurrencies may not be significant unless other governments will introduce similar measures.
Cryptocurrencies are here to stay, but the landscape may turn less beneficial if government action is taken to control the sector, regulate, and tax it, placing it on the same level as other overregulated assets. The future gets more cloudy with each step taken to limit the advantages of the cryptocurrency sector. The XRP/USD could be a test case of the severity of a regulatory clampdown.
The forecast for the XRP/USD turned bearish after Ripple lost its upside momentum inside its flat Ichimoku Kinko Hyo Cloud. A head-and-shoulders chart pattern formed, adding to breakdown pressures in price action. The Tenkan-sen and the Kijun-sen turned sideways as well, while the CCI is drifting lower. With bearish developments on the rise, traders should expect a short-term sell-off in Ripple, set to lose market share over the next few weeks and months.
Should price action for the XRP/USD remain inside the or breakdown below the 0.4570 to 0.4880 zone, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.4690
- Take Profit Zone: 0.2970 – 0.3380
- Stop Loss Level: 0.5060
Should price action for the XRP/USD breakout above 0.4880, the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.5060
- Take Profit Zone: 0.5730 – 0.6100
- Stop Loss Level: 0.4880
Tesla | Fundamental Analysis
EUR/JPY | Euro to Japanese Yen Trading Analysis
Recent articles
EUR/JPY | Euro to Japanese Yen Trading Analysis
