With the recent rally in the cryptocurrency market, the XRP community is becoming overly bullish again. As a result, we see double, triple, four, and even five-digit price targets being promoted with assurances that nothing will ever go wrong for XRP. However, we would like to remind our audience that there is nothing like risk-free investment in the trading industry. Unfortunately, it seems that with each rally, new ridiculous ideas come to light. Recently, there has been much speculation about central banks adopting XRP as Central Bank Digital Currency (CBDC). As for the United States, there is no mention of such plans on the FED’s website or even in Project Cedar (one which is responsible for the development of CBDC).
Regarding Saudi Arabia, which signed a blockchain deal with Ripple in 2018, the story does not seem to be different. The subject of this deal was to create a pilot program for Saudi banks related to cross-border billing account technology (and not to use XRP as CBDC). Furthermore, in 2020, Project Aber (in conjunction with the central bank of UAE) concluded the following: “Note that public blockchain protocols such as Ripple and Stellar, which are often positioned for cross-border remittance use cases, were ruled out because of the obvious need for permissioning and privacy for an interbank payment use case (which these protocols did not support).“
To sum up this quick take on XRP as CBDC, we believe central banks do not need to adopt an already existing cryptocurrency when they can issue one of their own (without dealing with the troubled past of XRP and its executives). Therefore, we warn market participants about this misleading narrative.
*If anyone knows more about the subject and plans of any central bank using XRP as CBDC, please share them with us.*
Illustration 1.01 Illustration 1.01 displays the daily chart of XRP and the relationship between the price and volume. Over the past two weeks (since 9th January 2023), the volume has declined, accompanying the price increase. That is not a particularly bullish development as it hints at fewer buyers near high price tags.
Technical analysis Daily time frame = Bullish Weekly time frame = Slightly bullish (but the trend is very weak)
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Nice to see FUD spreading before the greatest rally of XRP, ahahah, Bullish 100%, we are getting out of this Wyckoff accumulation, and yes, what else can we expect after this HUGE drop from 2$, and a 5, FIVE years of consolidation in this range, you won make me sell my bag now, good luck to all the FUD receptive ppl, you will not go far listening Trading view comments that are wrong 95% of the time, mine included
Tradersweekly
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@Lemniscate, When do you expect this "greatest" rally of XRP to play out?
Lemniscate
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@Tradersweekly, as soon as we get out of the wyckoff accumulation, and when BTC would have retrace and re-enter in bull mode, with spy
Tradersweekly
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@Lemniscate, Okay, thanks for the feedback, and good luck.
OSx28
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The saudi conclusion is exactly why they decided to create a private side chain that will be compatible with what countries need. This doesn't mean they will use XRP if they create a CBDC, it means they will use the XRPL. This will only affect XRP price indirectly through the reputation bump, through fees, etc. which is positive, but all calls for XRP at 1000s of dollars are ridiculous. XRP's use-cases are good, but it will never replace a country's currency, much less a world currency.
Tradersweekly
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@OSx28, That distinction that you drew is our point. Thanks for the comment.
cryptospawn
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I can certainly appreciate the way you stack up the truth here. Hodlers of Cripple love the narrative because it they feel it justifies the mistake of buying into a centralized coin.