Ripple gained recently and broke the $0.2450 and $0.2500 resistance levels against the US Dollar. XRP price is currently correcting, but it is likely to continue higher towards $0.3000.Ripple price climbed higher and traded to a new monthly high at $0.2616 against the US dollar.The price is currently correcting lower, but dips remain supported near $0.2480 and $0.2450.There is a short term declining channel or a bullish flag forming with resistance near $0.2580 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair is likely to continue higher towards $0.2750 and $0.3000 in the coming days.Ripple Price Could Surge AgainAfter forming a Ripple PriceOn the upside, an immediate resistance is near the $0.2550 and $0.2580 levels. A successful break above $0.2580 might start another surge above the $0.2600 level.In the mentioned case, the price is likely to climb higher towards the $0.2650 and $0.2750 levels. The main target for the bulls could be $0.3000 in the coming sessions.Importance of $0.2450The previous resistance for ripple near $0.2450 is now a major support area. If there is a downside break below $0.2450 support, there is a risk of a larger decline in the near term.The next support is near the $0.2420 level and the 100 hourly simple moving average. If the price fails to stay above the 100 hourly simple moving average, it could continue to move down towards the $0.2320 support.Technical IndicatorsHourly MACD – The MACD for XRP/USD is now slowly moving in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently just above the 50 level, with positive signs.Major Support Levels – $0.2500, $0.2480 and $0.2450.Major Resistance Levels – $0.2550, $0.2580 and $0.2650.
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Author: Aayush Jindal
With China still in the lead, other countries are advancing their projects to develop payment systems around central bank digital currencies (CBDCs). Cambodia, for example, has recently revealed it will mint its own coin within months. The news comes as more details about the digital Chinese yuan indicate its main purpose will be to substitute cash in a system that provides “controlled anonymity.”
Cambodia Becomes the Next State With Own Coin in the Works
Cambodia will issue the government-backed crypto to fuel what has been presented as “a blockchain-based, peer-to-peer payment and money transfer platform.” Named ‘Project Bakong,’ the system is supposed to go live in the next few months, Phnom Penh Post reported, as it already has the support of 11 banks and more are expected to join in the near future.
Chea Serey, director-general of the National Bank of Cambodia (NBC), told the daily that the Bakong commenced in July, 2019. She insisted that the scheme will be operational within the current fiscal quarter. While the newspaper describes it as “a quasi-form of a central bank digital currency,” the central bank official stated that it will be the “national payment gateway for Cambodia.” Serey elaborated:
Bakong will play a central role in bringing all players in the payment space in Cambodia under the same platform, making it easy for end-users to pay each other regardless of the institutions they bank with. Eventually, we hope to allow cross border payment through the Bakong system too.
One of the private banks helping the project, Phnom Penh Commercial Bank (PPCB), has been working to deploy the new system at all of its branches. In comparison with traditional payment and money transfer options such as credit cards and mobile platforms, Bakong is cheaper and more convenient, PPCB President Shin Chang Moo noted.
The banker also commented on concerns that financial institutions like his might lose market share to Bakong. He believes that in the long run the project will facilitate the establishment of more inclusive financial ecosystems that will be beneficial for all stakeholders in the industry. Cambodia’s financial sector is still relatively immature in terms of number of service providers and users, he remarked.
Chang Moo made a clear distinction between Bakong and permissionless decentralized cryptocurrencies like bitcoin – the Cambodian digital currency project is a closed system backed by the country’s banks and financial authorities, which leaves no room for speculation. He also revealed that the Bakong wallets will be linked to bank accounts allowing users to exchange their digital coins for the nation’s fiat currency. “All the transactions will be done on a real-time basis with the records stored safely at NBC,” the banker said, adding that other central banks are likely to develop similar systems.
Japan Must Be Ready to Issue CBDC, BOJ Deputy Governor Says
Other governments and regulators have been paying attention to the accelerating developments in the field of CBDCs. These include much more developed economies and financial systems such as Japan. Although Tokyo has no immediate plans to issue a digital currency, the Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya recently stated that the institution must nevertheless be ready to do so. Amamiya was quoted by Reuters saying:
The speed of technical innovation is very fast. Depending on how things unfold in the world of settlement systems, public demand for CBDCs could soar in Japan.
But if Japan is still on the sidelines and Cambodia has only recently entered the digital currency race, China has been Asia’s leader in terms of progress towards actually issuing a CBDC. It started working on one about five years ago and stepped up its efforts after the announcement of private projects such as Facebook’s Libra. Although no timeframe has been announced for the anticipated launch, the People’s Bank of China (PBOC) is preparing to begin trials of the digital yuan with the participation of four state-owned commercial banks and three telecom operators.
The goals of those behind such projects may be quite different. In countries where governments have continued to suppress interest rates as an anti-crisis measure, digital currencies can make it easier for central banks to introduce and maintain negative deposit rates. Limiting cash in circulation may be another prime objective as authorities are targeting tax evasion, money laundering and other illicit activities while limiting financial privacy.
Chinese Digital Yuan to Provide ‘Controlled Anonymity’
An analysis published by the Chinese company Huatai Securities reveals more details about the Digital Currency Electronic Payment (DCEP) system which China is now finalizing. It’s become obvious that unlike decentralized cryptocurrencies, DCEP will operate in a centralized environment managed by the PBOC. Its “legally encrypted” currency will be a digital form of the renminbi (RMB). Unlike electronic payments based on platforms such as Alipay, which digitize money in the existing commercial bank account system, M1 and M2 money supply, the digital yuan aims to replace banknotes and coins, or the narrowest money supply type, M0. To achieve that, DCEP will also support offline transactions.
The digital yuan will be distributed through a two-tier system. The central bank will issue the currency to commercial banks against their reserves and then provide it to the public. Compared to the traditional fiat system, DCEP will offer the Beijing government and the Chinese central bank greater controls over all transactions, which is impossible with paper cash. As a substitute for cash, the CBDC will share characteristics with both paper currency and digital fiat currency. For example, the digital yuan is supposed to ensure what the report describes as “controlled anonymity of transactions.”
The current electronic payment methods such as bank cards and third-party payment platforms are tightly linked to real-name bank accounts, the authors explain. The DCEP system will transfer value without going through bank accounts. The central bank will have access to transaction data and can trace the digital currency sources using big data analysis, but commercial banks and merchants won’t be able to obtain that information. Individuals and businesses will open digital wallets through commercial banks and deposits and withdrawals will require a corresponding bank account. Similar to paper money, however, transfers between users won’t involve a link between their bank accounts and the network.
Digital yuan transactions will be processed through a centralized ledger. The DCEP consists of a central bank digital currency system which issues the coin and registers ownership, commercial bank digital currency systems performing banking functions, and a system providing authentication for the interaction between the central bank, commercial banks, and payment terminals.
What is your opinion about the race between governments to issue sovereign digital currencies? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock.
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Author: Lubomir Tassev
Ethereum price is trading with a positive bias above the $180 and $185 levels against the US Dollar. ETH is likely to continue higher towards $200 or $220 in the near term.Ethereum is trading in a bullish zone above the $180 pivot area against the US Dollar.The price climbed higher recently and revisited the $194-$195 resistance area.There was a break above a major contracting triangle with resistance near $182 on the hourly chart of ETH/USD (data feed via Kraken).Ethereum PriceIt opened the doors for a break above the $190 resistance area. Finally, the price traded to a new 2020 high at $195 and it is currently consolidating gains. Ethereum traded below the 23.6% Fib retracement level of the recent surge from the $179 low to $195 high.On the downside, there are many supports, starting with the $188 and $187 levels. Besides, the 50% Fib retracement level of the recent surge from the $179 low to $195 high is also near the $187 level.If there is a clear break below the $187 support, the price could start an extended downside correction towards the $185 support. The next major support and buy zone is near the $182 level and the 100 hourly SMA. Any further losses may perhaps lead the price towards the $178 support area.Bullish Targets for ETHOn the upside, an initial hurdle for Ethereum is near then $195 level. A successful close above the $195 resistance might set the pace for a break above the $200 barrier.In the mentioned case, there are high chances of a sustained upward move towards the $220 level in the coming sessions. An intermediate resistance is seen near the $212 level.Technical IndicatorsHourly MACD – The MACD for ETH/USD is slowly moving in the bearish zone.Hourly RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level, with a few bearish signs.Major Support Level – $185Major Resistance Level – $195
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Author: Aayush Jindal
Over the past few days, Bitcoin has found itself stalling in the low-$9,000s, seemingly trying to establish a level of support at around $9,200-$9,300. Right now, it seems to be working, with BTC rallying after the price heads into that range.This consolidation, analysts suggest, is likely a precursor to even more gains in the coming weeks, which will force Bitcoin above $10,000 for the first time in months.Key Bitcoin Buy Signal FlashesOn Sunday, prominent analyst Filb Filb — the trader who in October 2019 called Bitcoin’s surge to $10,000 and subsequent decline to the $6,000s — posted the below chart to his Telegram channel for crypto analysis.He wrote that these charts paint a “pretty bullish outlook” because the “volume indicators are good,” not to mention the “moving averages are trending up.” He added that his monthly chart coupled with his proprietary indicator is printing a buy signal, “which in the past has meant a big upside move.”He wrote in a previous analysis that he expects for the cryptocurrency to be trading well above $10,000 around the time of the halving:“Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.”As to why $12,500 makes sense, he noted that that is the “top target” for a bullish inverse head and shoulders chart that is forming on a medium-term basis for Bitcoin.Not Only Extremely Bullish SignWhile the aforementioned signal from Filb Filb’s indicator has yet to confirm, there is a confluence of other analyses that suggest Bitcoin is poised to see a strong rally into the coming months.Fundstrat Global Advisors, a New York-based markets research firm, recently noted that Bitcoin’s latest surge higher has allowed it to cross above the 200-day moving average. Firm co-founder Tom Lee wrote that whenever the price of Bitcoin is about the 200-day moving average, the six-month forward win rate for the cryptocurrency “jumps to 80%,” “essentially [meaning BTC is] ‘re-entering’ a bull market.”Bitcoin moved back above its 200-day moving average on 1/27… positive milestone and reinforcing 2020 shaping up to be great year for $BTC #bitcoin– whenever BTC >200D, win-rate (6M forward) jumps to 80% and essentially “re-entering” bull market (>200D)#BTD #bestasset2020 pic.twitter.com/YbpQYHpLaj— Thomas Lee (@fundstrat) January 29, 2020
On the fundamental side of things, cryptocurrency content creator The Moon just noted that Bitcoin’s hash rate “just hit” a new all-time high at over 123 exahashes per second.This, he claims, is a clear sign that BTC is “screaming for a huge bull run leading into the halving,” referencing the sentiment that Bitcoin will surge into and after the block reward reduction event, which will result in a 50% decrease in the asset’s inflation.Related Reading: Crypto Exec Explains Why Altcoins May Take Years to Get Off the GroundFeatured Image from Shutterstock
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Author: Nick Chong
- Apple’s (NASDAQ: AAPL) management severely downplayed the company’s China-related challenges in the earnings call last week.
- The company guided for revenue growth going in the 2nd quarter of 2020, but this is unlikely because of the worsening coronavirus outbreak.
- China is a huge part of Apple’s revenue and supply chain. Coronavirus disruption may lead to a guidance cut.
The Wuhan coronavirus outbreak is getting worse. And American tech stocks with Chinese exposure are feeling the pain. Recently, Apple (NASDAQ: AAPL) decided to shut down all its stores and corporate offices [Reuters] in China as a precaution against the deadly disease provisionally known as 2019-nCoV.
These actions are dramatically out of line with the positive guidance Apple is providing for Q2 of 2020.
The outbreak will not only cause a drop in Apple’s Chinese sales – but also a major disruption in its supply chain. These two challenges may result in a downward revision to Apple’s guidance and put significant downward pressure on the stock going forward.
Apple Stock Can’t Avoid Coronavirus
Apple is America’s largest company, but it is increasingly reliant on China to hit its revenue targets.
The Asian nation made up around 15% of Apple’s revenue in the 1st quarter of fiscal 2020 [Apple 10-Q]. On top of this, the company relies on a network of Chinese partners for its hardware supply chain. According to CEO Tim Cook [Apple.com], it even has some suppliers in the hard-hit Wuhan area.
Patrick Moorhead, an industry analyst from Moor Insights & Strategy, believes supply chain disruption is a foregone conclusion for Apple [SCMP].
“I can’t imagine a scenario where the supply chain isn’t disrupted,” said veteran industry analyst Patrick Moorhead of Moor Insights & Strategy. “If there’s one major hiccup in the raw materials, fabrication, assembly, test, and shipping, it will be a disruption.”
Apple’s Q2 Guidance Was Too Optimistic
Apple provided a wide guidance range for Q2 of fiscal 2020 – a period that ranges from January to March.
Management is forecasting [Apple.com] revenue of between $63 billion and $67 billion with a gross margin of between 38-39%. This represents significant growth from the prior Q2’s [Apple.com] revenue of $58 billion with a gross margin of 37-38%.
To put this in perspective, Apple believes it will grow revenue in a period of time when one of its core markets is reeling from an intensifying virus outbreak. They also believe they will improve gross margins during a period of supply chain disruptions.
It’s a tough sell.
While Apple tends to give accurate guidance, this wouldn’t be the first time the company was forced to cut projections over challenges in China.
Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com.
This article was edited by Josiah Wilmoth.
Last modified: February 2, 2020 3:15 PM UTC
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Author: Team E-crypto News