XRP sustains above $0.50 over the weekend, Ripple backs research on blockchain and quantum computing

Source Fxstreet
May 20, 2024 07:30
  • Ripple highlighted study from its University Blockchain Research Initiative on the latest developments in blockchain. 
  • The research outlines challenges faced by blockchains like XRP Ledger, against fast-evolving quantum computing. 
  • XRP sustained its gains, holds steady above key support at $0.50 on Monday. 

XRP price holds steady above the $0.50 key support level and edges higher on Monday, trading at 0.5130 and rising 0.70% in the day at the time of writing. Ripple (XRP) published its research from its University Blockchain Research Initiative (UBRI) on the intersection of blockchain and quantum computing. The May 17 report on Ripple’s website surveys the impact of quantum computing technology and its advancement on blockchains like the XRP Ledger, which is key to future technical developments in the firm’s network. 

XRP holders await a ruling in the Securities and Exchange Commission (SEC) vs. Ripple lawsuit on two major issues: the fine to be imposed on the payment remittance firm for allegedly selling securities (XRP) to institutional investors and an injunction on Ripple’s On-Demand Liquidity (ODL) platform, used by clients to manage liquidity. 

Daily Digest Market Movers: Ripple supports technical development-focused research

  • Ripple funds a University Blockchain Research Initiative to aid research and development in new frontiers of blockchain technology. 
  • The payment remittance firm published a report on May 17, highlighting a leading cause for concern among scholars in the sector, quantum computing and its impact on blockchains like the XRP Ledger. 
  • A Deloitte report titled “Quantum computers and the Bitcoin blockchain” shares the concern and reads:
  • “…the security of cryptocurrencies is threatened by future quantum computers, which are expected to break some of the currently used cryptography algorithms for which there are no clear replacements.”
  • In other words, advancements in quantum computing pose a threat to Bitcoin and other encrypted blockchains that rely on cryptography for security. 
  • Ripple dives into these issues in its Ripple Insights series. 
  • The SEC vs. Ripple lawsuit is another key catalyst influencing XRP price on Monday. 
  • XRP holders are awaiting a ruling on two major issues: a fine (the SEC proposed a $2 billion fine on Ripple for alleged violations of securities laws and sale of XRP to institutions, Ripple countered with a $10 million offer), and a likely injunction (order to stop) the sale of XRP to institutional investors through its On-Demand Liquidity (ODL) platform. 
  • Data from Cryptoeq.io shows that the sentiment among XRP holders is positive on Monday. 

Technical analysis: XRP poised for correction on longer timeframe

Ripple is likely to correct further as seen in the 1-week XRP/USDT price chart. While XRP sustained above key support at $0.50, the long timeframe chart shows bearish signs from indicators. 

The Moving Average Convergence Divergence (MACD), a momentum indicator, flashes red histogram bars below the neutral line, corresponding to the decline in XRP price between April 8 and May 20. A recent crossover of MACD below the signal line supports a bearish thesis for XRP. 

XRP price could suffer a nearly 9% drop to the April 19 low at $0.4665. Once the altcoin sweeps liquidity at this level, it could reattempt a recovery, depending on signs from technical indicators this week. 

XRP

XRP/USDT 1-week chart 

On the 1-day timeframe, XRP could attempt to test resistance at $0.5310, the 50% Fibonacci retracement of the decline from the April 9 top of $0.6431 to the April 13 low at $0.4188. A failure to break above this resistance could see XRP testing support at the key level of $0.50. XRP price has consistently closed above support at $0.50 throughout last week. 

The MACD supports a short-term bullish thesis on the 1-day chart, as seen below. 

XRP

XRP/USDT 1-day chart

Looking up, clearing the resistance at $0.5310 paves the way for XRP to test the May 7 high at $0.5443 (nearly 6% gains from current levels) and target the April 4 low at $0.5623. 

Ripple FAQs

Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.

XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.

XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.

XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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