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Ripple Price: Would It Benefit from Dubai’s Proposed Crypto Tax Haven?

Ripple price action is taking a breather today along with the rest of the cryptocurrency market. This followed a pause in the market selloff linked with the coronavirus outbreak on Wednesday. The risk-off sentiment that sent risky global assets plunging on Monday saw many cryptocurrencies gaining massively, as investment money shifted into alternative investments. Ripple price has also increased modestly as well, but experts are saying that this asset could be one of the big stories of 2020. 

The crypto markets woke up today to learn of the decision by the Dubai Multi Commodities Centre (DMCC) to create a cryptocurrency tax-haven. This project is a partnership with the Swiss Crypto Valley Venture Capital. It will involve creating a cryptocurrency valley in Dubai’s free trade zones where no form of personal or business taxes is paid. 

The project is also to help push the blockchain and cryptocurrency innovation. Dubai has been at the forefront of blockchain adoption by government, as it aims to make all its government functions fully blockchain-based by the end of the year. 

Ripple could benefit from such an arrangement, being at the centre of efforts to change the future of remittances and wire transfers as we know it. 

Read our Best Trading Ideas for 2020.

Technical Outlook for Ripple Price

The price of XRPUSD is currently teetering on the upper edge of the bullish flag on the daily chart, with potential for upside breakout which could send it towards the 0.25038. Previous highs of 3 September and 18 November mark the next resistance area at 0.26754. 

On the flip side, failure to break above the flag could see Ripple price go back to the flag’s lower border, which intersects the price level at which the lows of 24 September, 5 December and 24 January 2020 exist: 0.21409. This price move may allow Ripple price to keep consolidating within the flag. Invalidation of the flag pattern would occur if the price candles were to break below the 0.21409 price level, which could then open the door towards 0.19623 and 0.18303.