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Ripple Price (XRPUSD) Halts Slump As CEO Faults China Crypto Mining

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Eno Eteng (MSTA) Investment writer, Certified Financial Technician
    Summary:
  • Ripple price has found support at a critical level after RippleLabs CEO Garlinghouse criticized the concentration of the bulk of crypto mining in China.

Ripple price appears to have found support at a critical price level, as Ripple CEO Brad Garlinghouse blamed the woes of the cryptocurrency market on the concentration of Bitcoin mining on rigs in China. In a CNN interview, Garlinghouse expressed that having so much mining capacity in China amounts to Bitcoin centralization. He believed that this was affecting the market as a whole, given the government’s negative disposition towards cryptocurrencies. 

Some crypto enthusiasts, notably Eric Savics, have supported Garlinghouse, calling for the relocation of all Bitcoin mining from China. These calls stem from the perceived poor handling of the coronavirus epidemic. The central government has been accused of attempting to suppress information about the coronavirus outbreak. Such undue controls are deemed inimical to the growth of the cryptocurrency market and its ideals of decentralization.   

Read our Best Trading Ideas for 2020.

Technical Outlook for XRPUSD

Ripple price action has been able to find support at the critical price level of 0.28408 after yesterday’s correction saw it fall away from its highest levels in nearly eight months. The pullback move coincided with a similar move on BTCUSD, and with Bitcoin also finding support at the 9580 price level. 

A bounce from this support area could allow Ripple price to make another leg upwards, targeting the support-turned-resistance level at 0.30925 at the first instance. Further upside which can break this level may give Ripple price a chance to set its sights on 0.32613 and 0.34101.

On the flip side, a breakdown of the current support area may reveal a pathway towards 0.26754 initially, with 0.25038 and 0.23428 being the next support targets that could come into the picture with further downside action. 

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