Ripple (XRP) Draw-downs, is CoinBase a Systemic Risk?

Dalmas Ngetich

1 year ago

2 mins read

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Ripple prices slide 2.5 percent
Volumes drop reflects low prices

Although centralized exchanges play a role, it should be a worry if they become too big to fail because if they do, then it will pull down the market with it. Meanwhile, sellers are back, and Ripple (XRP) may drop to 34 cents or lower in a correction.

Ripple Price Analysis

Fundamentals

We can draw many lessons from the GFC of 2008-09. Before everything crumbled, the so-called global banks, too big to fail, lent out money to unqualified borrowers and because they couldn’t pay back their monthly obligation, the house of cards fell, pushing the global economy into a recession. Six weeks later, we had the Bitcoin whitepaper, and it has been a roller-coaster ever since.

Now we have CoinBase. A centralized cryptocurrency exchange that now supports Ripple (XRP) after years of turning the other way despite apparent demand from customers. However, CoinBase is more than a bank. Under the NYDFS, the exchange is also an approved and Qualified Custodian. In their agreement with the stringent state of NY, they can “store large amounts of cryptocurrency in a highly secure way,” list new assets and even experiment with staking which the exchange is piloting with Tezos.

Furthermore, they are facilitating cross-border payment to countries like India using Ripple (XRP) and USDC for free as long as the receiver as a CoinBase account. All this is after raising $300 million in Serie-E funding, money they didn’t need, said their COO, Asiff Hirji.

Let’s not also forget that they are seeking a general banking license, controls Keystone Capital in their bid to become an SEC-regulated broker-dealer and with a broad base, are actively integrating with traditional financial companies like Barclays. Now, the real worry is this: is CoinBase becoming a systemic concern for the cryptocurrency market?

Candlestick Arrangement

Even with building, development, and launching of new products, Ripple (XRP) is stable and down 2.5 percent in the last day. We retain a bullish outlook but despite candlestick arrangement and favorable fundamentals, odds are the third most valuable coin could pull back towards 34 cents in a correction, gifting traders another opportunity to ramp up.

Notice that we have lower lows relative to the upper BB and as long as prices are oscillating within Apr 5 high low, then Ripple (XRP) is technically bullish. If not and prices slide below 32 cents reversing gains of Apr 2 and Apr 5 as bulls cool off, then we shall exit our longs as we wait for trend resumption towards 40 cents.

Technical Indicators

Our anchor bar is Apr 5 bar—76 million against 37 million, and as a breakout bar, it confirms bulls of Jan 30 and corrects the undervaluation of Mar 26. Buyers are in control, but as prices drop, a safe bet is to wait for a breach of Apr 5 highs at 37 cents marked with high volumes forming a foundation for 40 cents and higher.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.