Market players are taking some clues from big news that hit the market today. Russia is in preparation to legalize Bitcoin and crypto as a currency this month. As per the reports, the Russian government and central government in their publication revealed that they will introduce a crypto regulatory draft by February 18th, 2022.
Is Crypto A Threat to Ruble (RUB)?
Experts believed that the cryptocurrency adoption by the Russian government could threaten the domestic currency Rubble. Crypto has always been seen as a threat to national currencies and hence majority of the govt.’s are hesitant to legalize it. As reported by Coingape, Russian Central Bank proposed a full ban on cryptocurrency in January, 2022. One among major reason for this is crypto’s potential threat to Russian national currency “Ruble”.
In fact, Russia’s second richest man, Vladimir Potanin said tokens can replace cryptos. He believes a digital Ruble is a better alternative to risky cryptos like Bitcoin.
Opposed to Russian Govt.’s negative stance on crypto since beginning, neighbor Ukraine has been pro crypto. As per Chainalysis, Ukrain ranks fourth in Global crypto adoption index.
Ruble Loses More Than 7% Against USD
On the technical charts, there are multiple signals indicating the continuation of the downtrend in the RUB/USD pair. The pair has been trading below the 20 and 50 DMA crossover since January 31st.
Investors are currently approaching the crucial 100-DMA at$74.65. The selling pressure would further be intensified if the mentioned level gets breached by the sellers.
The negative divergence in the Daily Relative Strength (RSI) has given the prior signal of the upcoming slump in the price. The momentum indicators made triple tops at 70, which corresponds to the fall in prices every time.
Another indicator, the Moving Average Convergence Divergence is about to breach the midline and if that happens will trigger another round of selling.
The RUB/USD pair keeps meeting sellers near the important Fibonacci retracement level, which extends from the lows of $69.21 made on October 26th.
The daily chart suggests that bears retain the control with multiple supportive signals. The pair continues to hover around a bearish 100 DMA, converging toward the 0.618% Fibonacci retracement level at $73.04 in the short term.
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