Coin Metric did a deep analysis of Ripple’s reports to find strong differences between what was announced and what the actual figures are. However, the Blockchain can profit from a recent bullish trend
A lot of information has been published about Ripple [XRP], Ripple Inc and Ripple Labs. The latter is an independent company and the issuer of XRP, the digital currency that is native to the Ripple Consensus Ledger. However, the controversy surrounding its decentralization and escrow strategy are the factors that play a crucial role at the scene. In a damning report from Coin Metrics, a blockchain analysis firm, it is said that Ripple Labs did not report the actual amount of XRP on its deposit.
The nature of Blockchain and most public books led Coin Metric to take a deep dive into Ripple’s reports, after which it found “several important discrepancies between what Ripple publicly reported and what was visible in the XRP ledger.” These included a “custodial tail” that is implemented differently than announced, leading to a faster future release of escrowed funds compared to the announced program: “Other parties, potentially associated with Ripple, are in possession of 55 million XRP in an unknown deposit address disconnected from Ripple’s main deposit account” and “Two quarterly market reports indicated a lower amount of XRP released from the escrow deposit for a total of 200 million XRP.”
In any case, this situation has seriously affected Ripple Labs. The report was launched a few months after Messari said that XRP’s market capitalization had surpassed 48%. In addition, since Ripple Inc is a majority shareholder, “there could be significant and persistent sales pressure in the XRP market, depending on the length and structure of the sales restrictions imposed on the partners that comprise the Ripple market.”
Price analysis XRP / USD
Ripple [XRP] is said to have risen 27.7 percent in the last week, losing 2.1 percent on the last day. While prices are in a strong bullish trend thanks to the large volume increase of May 14th, which increased prices in more than 34 cents, the first resistance level and purchase trigger will be reached once prices close above 40 to 43 cents. Conservative traders may increase in falls of 60 cents or 80 cents.
This is so because, despite the period of the last 5 to 6 months of extended consolidation, the trend is already marked by the bullish bar of September 2018 from which prices range. Therefore, it is from the point of view of effort against the result that the bulls are in an advantageous position. As a result, it is imperative that prices exceed the main resistance level of 40 to 43 cents.
Ideally, behind this closure, the upper level should be higher than the average volumes that exceed 187 million XRP of May 14th. Anyway, according to the candlestick charts, each fall is another purchase opportunity and aggressive traders can load with the first targets at 40 cents and then at 60 cents depending on the levels of participation.
By Willmen Blanco