More than a Ripple: What Pushed XRP up 100% in a Week

In a supernormal rally that almost lost ethereum its silver spot, ripple (XRP) gained about 100 percent in a week.

The maximum difference in XRP’s market cap between the week’s lowest and highest level turned out to be almost $19.8 billion. That’s nearly a 184 percent jump. True, the valuation dropped after establishing the weekly peak, but the extent of the drop was low. During the uptrend, the market cap of ripple once even went above the market cap of ethereum. For a short period, XRP was the new silver to bitcoin’s gold. However, an imminent sell-off near peak reversed the XRP trend and brought it back to the third position.

But, what were the reasons behind the XRP’s bullish behavior? So far, no technical aspects could explain it, so CCN dug into the fundamentals instead. And, to begin with, we found several that correlated with the XRP rally.

Fundamental Factor 1: Launch of xRapid Solution

Ripple Labs’ long-anticipated cryptocurrency service, dubbed xRapid, is heading for a commercial launch as soon as next month. The commercial payment service allows financial institutions to use XRP tokens for conducting cross-border transactions. So far, xRapid has not bagged many major partnerships from mainstream financial institutions, in contrast to RippleNet, Ripple Labs’ XRP-negated blockchain project for enterprises, that has a top-ten US bank lined up for integration.

The news of the xRapid launch surfaced first on CCN on Sept. 17, when XRP was trending sideways against USD. The value began trending upwards just at the beginning of the next day’s session, establishing a new intraday high towards $0.33990-fiat from the low of 0.26627-fiat.

Fundamental Factor 2: Coil and PNC Announcement

An announcement linking XRP with the web’s biggest names, including Wikipedia, Twitch, and YouTube, came on Sept.  20 from Coil. The San Francisco company, headed by former Ripple Labs CTO Stefan Thomas revealed details about their web monetization app that would allow content creators to earn tips via XRP tokens. Overall, the news brought a likely user-adoption case for XRP in limelight, while it was already riding high on previous bullish sentiment.

On Sept. 20, another Ripple-centric news that surfaced on the web was PNC-related. The $380 billion US banking giant joined RippleNet to enable near-instant money transfers with on-demand liquidity and end-to-end tracking on a blockchain. The partnership, however, does not guarantee a boost in XRP adoption. Nevertheless, it positioned XRP’s largest holder, Ripple Labs, as a company with a big future ahead — something that could have excited the traders speculating on XRP.

The Concluding Fundamental Factor: FOMO

When an asset keeps breaking its crucial resistance levels one after another, day traders mainly go long on their positions in “fear of missing out” on profits. XRP traders seem to have undergone a bullish transformation after witnessing an impressive rally after weeks of a downward trend. Ripple has brought back the buying sentiment in the market, and all the top coins went green as it mooned.

XRP/USD formed higher highs towards 0.79162-fiat. Since then, the pair has corrected almost 27 percent. Those who entered long anywhere below the current value could attempt to exit their positions on a decent profit, causing a minor sell-off towards 0.54490-fiat, the support level from late May. A breakdown from there could push XRP/USD further down towards 0.45627-fiat, the support from early April that influenced a sharp rally towards 0.96635.

While returning to its bearish sentiment, the pair would need to invalidate the two support levels mentioned above. The launch of xRapid next month, meanwhile, would promise a positive buying scenario overall.


Source
Author: Yashu Gola
Image CreditCharts from TradingView.

Australia’s dirtiest coal plant to be reopened for Bitcoin [BTC] mining

One of Australia’s dirtiest coal plant which was closed in 2014 due to severe criticisms faced by environmentalists for producing more CO2 than any other coal powered station might now re-open to mine cryptocurrencies like Bitcoin, Litecoin etc.

IOT an Australian tech based firm has partnered with Hunter energy to build a blockchain center inside the coal-fired power station to provide cheap electricity for the blockchain applications. The company stated that their plan could create a mini silicon valley in Australia.



Bitcoin mining in Australia costs nearly $10,000, but the highly polluting coal-mine might bring down the cost and potentially even lower than the price of Bitcoin mining in China at $3000.

Bitcoin mining is the process that generates new Bitcoins while maintaining the networks shared transaction ledger. It consumes large amounts of electricity primarily because of the huge number of specialized ASICs [application-specific integrated circut] computers that are needed to undertake the calculations which serve to prove that work was done.
In 2018, cryptocurrency mining is estimated to consume more than 130 billion kWh of energy, equal to Argentina’s annual electricity consumption, and nearly thrice as much energy as it consumed in 2017.

An IOT spokesperson states that :
“The average consumer pays around 28 cents per Kilowatt-hour, with what IOT are doing its price is 8 cents at daytime and 5 cents at night time.”

The major drawback of this operation is that it would cause adverse effects on the environment due to the mine generating around 22,000 pounds of CO2 every hour. The estimates of each power station would be around 1.06 million tonnes of greenhouse gases each year as a result of the burning coal.

Abraham Cambridge CEO of Sun Exchange says:
“Blockchain, being one of today’s most forward-thinking industries, should not be looking backwards at coal to meet its energy needs, instead we should focus on deploying more clean energy capacity.”


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Rajath Kumar
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Consulting Firm Predicts Ethereum Could Reach $2,500 By The End Of 2018

Independent financial consulting company deVere Group, which provides investment and wealth management services, has predicted that the price of Ethereum (ETH) could hit $2,500 by the end of the year, MarketWatch reported April 27.

The financial consultancy firm said that the second largest cryptocurrency could see a significant rise, predicting its fourfold increase thanks to growing adoption of the digital currency as well as the use of smart contracts. Nigel Green, founder and CEO of deVere Group, told MarketWatch:
“The price of Ethereum is predicted to increase significantly this year, and could hit $2,500 by the end of 2018 with a further increase by 2019 and 2020 […] This general upswing will be fueled by three mains drivers. First, more and more platforms are using Ethereum as a means of trading. Second, the increased use of smart contracts by Ethereum. And third, the decentralization of cloud computing.”


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Green also said that the introduction of cryptocurrency market regulation is only a matter of time. According to Green, this will result in more confidence in the market and better investor protection. At press time, Ethereum is trading at $653.66, with a market cap of $64.7 bln.

Following the record-breaking rally of Bitcoin last December, Green predicted that, “We should expect to see Bitcoin see-sawing in coming weeks. Sharp moves are likely, followed by subsequent corrections.”

Earlier this month, Fundstrat co-founder Tom Lee, known for his optimistic Bitcoin predictions, repeated his bullish forecasts for the leading cryptocurrency price, telling CNBC that it could reach $25,000 by the end of the year.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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