Summary:
- Cryptocurrencies are rising today after a large decline
- Ripple higher by around 33%
- French/German proposal for regulation to be made at G20
It’s been a typically turbulent week for cryptocurrencies with all 5 markets experiencing major declines on talk of South Korean crackdowns, Chinese plans to stop Bitcoin trading and the collapse of Bitconnect. However, it appears that crypto bulls aren’t yet prepared to give up the ghost easily and today has seen an attempted recovery.
Cryptocurrencies are on the rise today as they look to recoup some of their recent declines. Source: xStation
Ripple has led the move back higher with an incredible daily gain of 33%. The market is now back around the 1.60 level after reaching a low of 0.88. This low coincided with the 78.6% fib retracement of the strong rally seen at the end of last year and buyers manged to successfully defend this level for now. Today’s gains has seen the market move back above the 61.8% at 1.4033 and the 50% at 1.7653 is now a level to keep an eye on for possible resistance.
Ripple has broken above a falling trendline from its all-time high today as it looks to recover form major recent declines. Source: xStation
One possible fundamental reason behind the rebound is comments from the French finance minister calling for an increase in regulation. Le Maire has said that a joint French/German proposal on Bitcoin regulation will be presented to the G20 meeting that takes place on 17-18th March.
Whilst on the face of it heightened regulation maybe considered negative for price it could actually have the opposite effect. Given some of the wild swings seen lately and the recent demise of Bitconnect it could be argued that regulation may be a positive for the market.