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XRP Transactions Skyrocket in Anticipation of Ripple’s Swell; Will Price Follow?

Summary:
XRP daily transactions are skyrocketing ahead of its most anticipated conference. XRP could surge significantly, according to a renowned technical analyst. The lack of regulatory clarity in the U.S. about cryptocurrencies is affecting innovation. The number of daily transactions on the XRP network is reaching levels not seen since 2018. Meanwhile, Ripple is preparing to host its annual conference, Swell. Despite the hype around the event, this cryptocurrency is drifting sideways, as traders seem worried about the regulatory uncertainty surrounding XRP. Swell by Ripple Ripple, the company behind XRP, organizes an invite-only annual conference that brings together some of the most prominent figures in the financial services and payments sector. Dubbed Swell, the event was created to

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  • XRP daily transactions are skyrocketing ahead of its most anticipated conference.
  • XRP could surge significantly, according to a renowned technical analyst.
  • The lack of regulatory clarity in the U.S. about cryptocurrencies is affecting innovation.

The number of daily transactions on the XRP network is reaching levels not seen since 2018. Meanwhile, Ripple is preparing to host its annual conference, Swell. Despite the hype around the event, this cryptocurrency is drifting sideways, as traders seem worried about the regulatory uncertainty surrounding XRP.

Swell by Ripple

Ripple, the company behind XRP, organizes an invite-only annual conference that brings together some of the most prominent figures in the financial services and payments sector. Dubbed Swell, the event was created to examine different trends as well as real-world issues in the remittance industry.

The conference is going to take place in Singapore on Nov. 7-8. The CEO of BKash Kamal Quadir, the Singapore Foreign Ministry Ambassador Chan Heng Chee, and the former governor at the Reserve Bank of India, Dr. Raghuram Rajan, are the keynote speakers for the summit.

As the event approaches, XRP experienced a significant spike in the number of daily transactions.

Transactions on the Rise

On Oct. 26, the number of daily transactions on the XRP ledger skyrocketed to 1.65 million, according to data from BitInfoCharts. The move represents a 100% increase compared to the number of transactions in the network a few days before. The only time XRP was this active was in early 2018. At the time, it peaked at 1.70 million daily transactions as its price retraced from an all-time high of $3.30.

The recent transaction spike was so significant that XRP decoupled from the top cryptocurrencies in terms of daily transactions. Ethereum was the second most active blockchain on Saturday, with 717,000 transactions, while bitcoin came third with 305,000 day-to-day operations. The other two ledgers, bitcoin cash and Litecoin, had 62,000 and 22,000 daily transactions, respectively.

XRP is outperforming the top cryptocurrencies in terms of daily transactions. | Source: BitInfoCharts

Even though XRP is currently the most active cryptocurrency in terms of daily transactions, its price is not catching up.

XRP Technical Analysis

XRP has been trying to break above the $0.30 resistance level since Aug. 14. Now, several technical indicators are signaling that this cryptocurrency could be preparing for a bullish impulse.

Based on the weekly chart, XRP is trading above the 7-week moving average, which is a positive sign. A close above the $0.30 resistance could allow it to test the 50-week moving average. However, another volume spike could take XRP to the 80- or 100-week moving average. These moving averages sit around $0.38 and $0.51, respectively.

The moving average convergence divergence (MACD), which helps determine changes in a given trend, turned bullish two weeks ago. The crossover between the 12 and 25-week exponential MA increased the chances for an upswing.

XRP’s 1-week chart shows multiple bullish signs. | Source: TradingView

Along the same lines, 40-year trading veteran Peter Brandt recently stated that a diamond bottom seems to be forming in XRP’s daily chart. Diamond bottoms are reversal patterns that are not common on traditional assets. Brandt estimates that if XRP closes above $0.30, it could shoot up more than 50% to $0.47.

Nevertheless, an increase in the selling pressure behind XRP that can push it below the 7-week moving average could ignite a sell-off that taking it to lower lows.

Regulatory Uncertainty

The volatility of this crypto is low when compared to others despite the positive outlook seen above. This could be a direct result of the latest complaint filed against the distributed ledger startup claiming that its tokens are unregistered securities under the U.S. Security and Exchange Commission (SEC) framework.

The lack of regulatory clarity in the U.S. is a concern for many, even for Kristin Smith, Director of the Blockchain Association. This is a non-profit organization that advocates and promotes the adoption of blockchain technology around the world.

“I’m very worried, and I don’t think that is an irrational or paranoid viewpoint to take. Companies, even within members of the Blockchain Association, are moving their operations overseas because there are strong consumer protections in place and certainty in those regulatory frameworks,” said Smith at Ripple’s 2019 UBRI Connect.

The SEC is ramping up its efforts to dissipate fraud and unregulated companies in the cryptocurrency industry. As a result, Ripple’s CEO Brad Garlinghouse revealed that he spends about 25% of his time engaging in discussions with global regulators. It remains to be seen whether Garlinghouse’s influence is significant enough to grant XRP a “non-security” status. And, if Swell would have a positive impact on this cryptocurrency.

This article was edited by Sam Bourgi.

Last modified: October 30, 2019 16:26 UTC

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