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XRP/USD closed at 1.03397 after placing a high of 1.09311 and a low of 1.02673. Ripple prices fell near 1.000 level over the weekend after reports of Joe Biden’s tax hike plans unsettled markets. Crypto prices saw a sudden plunge after reports in the market that the U.S. administration was planning to increase capital gains taxes on wealthier investors in the following package of economic measures.
According to reports, the marginal rate of capital gains tax could rise to 39.6% compared to a current base rate of 20%, and this would only apply to those earning more than $1 million a year. This report prompted fears that investors could liquidate current stock holdings in the near or medium-term to lock in a lower tax rate on their gains. Hence, cryptocurrencies fell, and Ripple (XRP) followed the trend over the weekend and reached a near 1.000 level.
Furthermore, the chairman of Ripple has introduced new BITCOIN mining proposals that will transition the crypto mining process into a more eco-friendly one. In recent years, Bitcoin has been criticized for the high-energy consumption of Bitcoin mining activities. The energy consumed during the mining process is also anticipated to grow as the crypto prices surge. The co-founder of Ripple Labs, Chris Larsen, said that Bitcoin and other crypto networks that use proof-of-work should transfer to the proof-of-stake (PoS) mechanism as PoW affects the environment. He added that other types of consensus algorithms were effective at being secure while only using a tiny fraction of the energy. On the other hand, the U.S. Securities and Exchange Commission (SEC) attorney Jorge Tenreir said in a letter filed to New York court that Ripple and its executives have not disclosed data critical to the ongoing legal battle. This also added pressure on the prices of XRP/USD over the weekend.
XRP/USD Daily Technical Levels
Support Resistance
1.01095 1.13067
0.97104 1.21048
0.89123 1.25039
Pivot Point: 1.09076
The XRP/USD pair is trading with a bullish bias at the 1.1703 level, disrupting the immediate resistance level of the 1.0963 level. On the higher side, XRP/USD may find resistance at the 1.2746 level, and violation of this can extend buying trend until the 1.4332 level. On the lower side, the support continues to hold around 0.9457 level. The MACD and RSI support an upward trend, so let’s consider taking buy trades over the 1.09076 level. Good luck!
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