Ripple’s native token, XRP, is trading at its lowest point in the past week. As of this writing, the altcoin exchanges hands at $0.53, noting an additional 3% price drop over the past 24 hours. 

However, BeInCrypto’s assessment of XRP’s technical setup suggests that this decline is only temporary, and the altcoin may soon experience a rebound. Here is why.

Ripple’s Selling Pressure Begins to Weaken

Despite its price decline, XRP’s Chaikin Money Flow (CMF) has maintained an uptrend over the past few days. This indicator measures an asset’s buying and selling pressure over a specified period. As of this writing, it sits at -0.10, attempting to cross above the zero line.

As in XRP’s case, when its Chaikin Money Flow (CMF) is negative but trending upward while the price declines, it indicates the asset is still under net distribution, meaning there is overall selling pressure. However, the decreasing intensity of this selling suggests the bears are weakening, and bullish interest is starting to build.

Read more: Everything You Need To Know About Ripple vs SEC

XRP’s positive funding rate, which stands at 0.01% at press time, reflects the bullish bias that the altcoin enjoys despite the dip in its value. 

The funding rate is a periodic fee used to keep the price of a perpetual futures contract aligned with the spot price of the underlying asset. When the funding rate remains positive even as the asset’s price drops, it signals that most traders are still bullish, betting on a price recovery despite the ongoing decline.

XRP Price Prediction: A Seven-Month High is at Hand 

XRP is currently trading at $0.53, holding just above a key support level of $0.52. A resurgence in bullish sentiment could drive renewed demand for the altcoin, potentially triggering a rebound.

Should this happen, XRP’s price may attempt to break through resistance at $0.65. If successful, the token could rally further, eyeing its seven-month high of $0.74.

Read more: Ripple (XRP) Price Prediction 2024/2025/2030

However, if the downward trend persists, the bulls may be unable to defend support at $0.52, and XRP’s price may drop to $0.38, invalidating the bullish prediction above. 

BitFuFu, a cloud miner partnered with Bitmain, acquired an 80-megawatt Bitcoin mining facility in Ethiopia. This purchase is part of an overall strategy shift from BitFuFu, with more global presence and direct asset ownership.

The Grand Ethiopian Renaissance Dam (GERD) is Ethiopia’s most popular destination for miners, but BitFuFu has not confirmed the site will be here.

BitFuFu’s Ethiopian Strategy

BitFuFu, a Singapore-based cloud mining company partnered with Bitmain, announced in a press release the acquisition of an 80-megawatt Bitcoin mining facility in Ethiopia. Bitmain, an early investor in BitFuFu, has been significantly expanding its Bitcoin mining investments this year. According to the press release, BitFuFu is “Bitmain’s sole strategic partner in the cloud mining space.”

Read More: BitFuFu Review 2024: A Guide to The Cloud Mining Platform

This facility will be a substantial expansion to BitFuFu’s mining capabilities. Before this, most of BitFuFu’s infrastructure was based in the United States and hosted by third-party providers. The new facility will boost BitFuFu’s capacity by 13%, aligning with the company’s shift from an “asset-light” strategy to owning a more diversified portfolio of mining assets.

“This acquisition is a critical milestone as we work to vertically integrate and transition towards a more diversified and resilient portfolio of Bitcoin mining sites. As we integrate this facility into our global infrastructure, we can capitalize on lower energy costs to reduce Bitcoin production expenses, expand our operational capacity, and enhance profitability,” said CEO/Chairman Leo Lu.

Ethiopia has emerged as a popular destination for Bitcoin miners in recent years, particularly attracting investment from Chinese firms following China’s 2021 mining ban. The key draw for these investments is the Grand Ethiopian Renaissance Dam (GERD), a vast hydroelectric facility that offers ample power supply, making it appealing for Bitcoin mining operations.

Despite the Grand Ethiopian Renaissance Dam (GERD) being a growing hub for international mining in Ethiopia, BitFuFu has not confirmed that its new facility will be located there. Given Ethiopia’s limited electrical grid, GERD seems like the most viable option for large-scale mining operations. Additionally, with BitFuFu’s strong business ties to Chinese firm Bitmain, the connection to GERD appears likely, though the company has yet to officially disclose the location.

Read More: The Best Countries to Mine Cryptocurrency in 2024

In any case, this major acquisition in Ethiopia will significantly boost BitFuFu’s global presence and strengthen its competitiveness in international markets. While the company’s press release did not reveal the price of the new facility, the purchase is positioned as the first step in a broader strategic expansion.

“Moving forward, we aim to strengthen our global position by acquiring or building additional facilities and drive further innovation in the digital asset mining sector while delivering long-term value to our shareholders,” Lu stated.

The United Arab Emirates (UAE) has introduced a structured legal framework for Decentralized Autonomous Organizations (DAOs) through the RAK Digital Assets Oasis (RAK DAO).

This initiative highlights RAK DAO’s commitment to creating an environment where decentralized organizations can flourish. It marks a significant move to bolster the region’s position as a global hub for web3 innovation, with crypto-friendly policies enabling the course.

UAE’s New DAO Law Empowers Crypto and Web3

It comes as RAK DAO, a UAE-based Free Zone dedicated to digital asset companies, launched its DAO Association Regime (“DARe”). The DARe framework is particularly noteworthy for its tailored approach, offering two distinct models: Startup DAO and Alpha DAO.

The Startup DAO model caters to emerging projects, accommodating organizations with fewer than 100 members. It aims to simplify regulatory processes, allowing new ventures to focus on growth and development within a flexible legal environment. In contrast, the Alpha DAO model targets more mature DAOs with treasuries exceeding $1 million. Specifically, it provides them with the necessary support to scale their operations efficiently.

Read more: How Does Regulation Impact Crypto Marketing? A Complete Guide

Dr. Sameer Al Ansari, CEO of RAK DAO, articulated the importance of this new regime. He also highlighted essential features such as the provision of a separate legal identity and limited liability for founders, contributors, and members. Similarly, Luc Froehlich, Chief Commercial Officer of RAK DAO, echoed Al Ansari’s sentiments.

“The introduction of DARe represents a stepping stone in our journey towards building a global hub for the blockchain and digital assets ecosystem. By offering a structured legal framework, we enable DAOs to interact with the off-chain world, such as opening a bank account and owning both on- and off-chain assets. This legal wrapper will also allow DAOs to signal and raise their credibility amongst peers, members, and investors,” Froehlich added.

Taken together and combined with the specific legal clarity and tax optimization, this development reflects the UAE’s and RAK DAO’s commitment to embracing novel technologies and fostering the blockchain ecosystem.

UAE as a Leading Destination for Crypto Firms

As the global space for digital assets continues to grow, the DARe framework positions the UAE as a leading destination for crypto-related ventures. The regulatory clarity and support provided through DARe could attract startups. Nevertheless, it would also set a new benchmark for other jurisdictions around the world.

Comparatively, while the UAE is advancing its regulatory frameworks to encourage Web3 and digital asset innovation, Italy has recently made headlines for its capital gains tax on cryptocurrencies, which could deter investment in this growing sector. Italy’s approach, focusing on taxation rather than fostering innovation, contrasts sharply with the UAE’s proactive stance in establishing supportive regulatory frameworks. This comparison highlights the differing priorities of these two nations.

In the UAE, the emphasis is on attracting and nurturing blockchain ventures, whereas Italy’s tax policies may complicate the sector for digital asset companies. This could limit their growth and development by inspiring “capital flight.”

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Moreover, recent legal changes from Dubai’s Virtual Asset Regulatory Authority (VARA) highlight the UAE’s focus on creating a favorable regulatory environment for virtual assets. These changes are poised to enhance operational frameworks for digital asset companies, further cementing the UAE’s commitment to becoming a global leader in blockchain innovation.