Bitcoin recovered from early losses to trade over $ 9,400
Bitcoin has grown dramatically in the last 3 days after another one weekend helped to catapult # 1 crypto currency over 15% to a new annual high. Right now we can see that the price did not retest the $ 9,438 high – which remains the most critical short-term resistance. When Bitcoin breaks above this level, it will signal the start of a strong bullish market.
Total market capitalization dropped to $ 284 billion from $ 288 billion on Tuesday. And the average daily volume of trade is unchanged at $ 53 billion.
Facebook finally released its long-awaited crypto currency project called Libra
The social media giant Facebook finally launched its long-awaited financial infrastructure project, based on crypto currency and blockchain. The new Libra currency will be backed by low volatility assets such as short-term government bonds from reputable central banks as well as bank deposits.
The long list of partners includes PayPal, Visa, Mastercard, Uber and many others – but no banks. The companies will have nodes in the new independent subsidiary Calibra. What, however, does this mean for existing crypto currencies?
Three of the reasons why crypto currencies can take advantage of the Libra project
With the launch of its own digital coin, Facebook recognizes the importance of the technology and the need for crypto currencies. This serves as a seal of approval for Bitcoin – who started the revolution – and everyone else. FB also makes the cryptos mainstream – there is nothing more mainstream than a company that has two billion users.
On the other hand, Facebook’s entry into the game – which is under increasing regulatory scrutiny – could take a more serious approach from the Securities and Exchange Commission (SEC) to approve the first Bitcoin ETF. And the endless postponements may be over. If the crypto currency ETF is launched – prices may increase.
Many, however, feel uncomfortable with the use of Facebook personal data and choose other messaging services such as Telegram and Signal. The same can happen with crypto currencies.
The suspicion that the Libra currency and its transactions are watched by Mark Zuckerberg can shed some light on existing offerings that are decentralized. Using a currency that is free of corporate interests is more attractive. And it can also push prices higher.
Ripple announced a partnership with MoneyGram
On the eve of the big splash of Facebook, Ripple announced a significant partnership with MoneyGram, the world’s second largest money transfer service. The deal is yet another opportunity for Ripple to use its xRapid payment protocol. The unique feature of xRapid is the ability to transfer value without a bank account using the XRP asset.
It is important to emphasize that Facebook’s partnerships do not include banks. These dinosaur institutions may fight with Facebook and may counting more on Ripple as a partner. But it is still too early for such speculation. However, we can carefully consider that Ripple has a chance to become a winner.
The third largest coin with the current market capitalization of $ 18.2 billion dropped 2.23% for the past 24 hours and traded at $ 0.4303 at the time of my writing. For the week, Ripple grew by 9.18%.
For the upcoming day, a break above $ 0.4404 (Sunday’s high) will support the upside intraday momentum. If been supported by a broad-based crypto rally, Ripple’s XRP could test the high of $ 0.4604 on Monday.
Failure to breakout above the $ 0.4404 level may signal sentiments swings. The decline to $ 0.42 may put the first support of $ 0.4143 into the game before any recovery.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.