Ripple (XRP) made three major announcements this week. Despite the bullish developments, XRP is struggling to break past resistance at $0.50. Ripple’s stablecoin, XRPL EVM sidechain, and new acquisition have failed to catalyze gains in the ledger’s native token.
XRP is changing hands at $0.4874 at the time of writing. The altcoin remains range-bound under the sticky resistance at $0.50.
Real USD
— XRP (@BankXRP) June 12, 2024
Ripple CEO drops the new Stablecoin Name “Real USD”
The name of the @Ripple stablecoin, the $RLUSD, I like to call it Real USD… Ripple USD’ - Brad Garlinghouse (@bgarlinghouse) at #XRPLApex 2024
⚡ #XRP pic.twitter.com/T2CuT1Gdjb
Very excited to share that as part of the deal close, I am joining @Ripple as the SVP of Stablecoins to lead the team bringing Ripple’s stablecoin to market later this year (though remaining CEO of Standard Custody as well)! https://t.co/qIWAeRJ8ll
— Jack McDonald (@_JackMcDonald_) June 11, 2024
Ripple is in a state of decline since March 12. The altcoin is poised to extend its losses as momentum indicator Moving Average Convergence Divergence (MACD) flashes red histogram bars under the neutral line.
XRP is trading at $0.4874 at the time of writing. Ripple could plummet to support at $0.4508, its June 7 low, as seen in the XRP/USDT 1-day chart.
XRP/USDT 1-day chart
If XRP sees a daily candlestick close above resistance at $0.53, it could invalidate the bearish thesis. The altcoin could begin its recovery and rally toward the Fair Value Gap (FVG) between $0.6029 and $0.5491, as seen in the 1-day chart.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.