Regulatory Hurdles Could Push Ripple Out Of US, Says Exec

By James Gray·7 October 2020·2 min read

Key Points

Ripple's Chris Larsen signaled on Tuesday that the company may need to relocate away from the US in search of friendlier regulatory ground.
Speaking at the LA Blockchain Summit, the executive chairman

Ripple's Chris Larsen signaled on Tuesday that the company may need to relocate away from the US in search of friendlier regulatory ground. Speaking at the LA Blockchain Summit, the executive chairman laid out a slate of alternatives: the UK, Switzerland, Singapore, and Japan all ranked as possibilities if the company found itself squeezed by Washington. "The message [there] is digital currencies are not welcome," Larsen said of the current US posture, before suggesting that those operating in crypto "probably should be going somewhere else." His comments arrived as regulators trained their sights on major crypto platforms, with BitMEX drawing particular heat. The executive also invoked a broader geopolitical frame, warning that the US risked losing to China in a blockchain "cold war."

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XRP rallied this week, marking a string of higher lows while outperforming most other top-10 cryptocurrencies by market cap. Intraday gains topped 7%. But the rally stalled at $0.25, a major resistance level. Should selling intensify, the token faces a drop toward $0.23, though bulls appeared weak amid mounting selling across the broader market.

Tuesday's market action disrupted that momentum. US President Donald Trump scrapped talks on an additional COVID-19 relief package. Stock indexes fell hard on the news. The selloff rippled through crypto: Bitcoin slid to $10,300, and the entire cryptocurrency market shed more than $10 billion. XRP and ETH each fell 3% in 24 hours.

On the daily chart, XRP had carved out what looked like a bullish formation, suggesting a break above the descending parallel channel. That didn't materialize. Price retreated toward the midline instead, and extended losses seemed probable. XRP now sits beneath its 50-period simple moving average. A retest of the 100 SMA would target $0.244. Below that sits the next major support zone at $0.232, the low point from a recent downswing that originated around $0.259.

The hourly timeframe offered a glimmer of hope: a hidden bullish divergence on the MACD could gain traction if selling subsided. But conviction among bulls looked lacking. Defending the $0.23 level would require serious buying pressure, and without it, further drops loomed.

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