XRP stuck below $0.50 despite Ripple’s three big announcements this week

Source Fxstreet
  • Ripple announced the launch of its dollar-pegged stablecoin, Real USD, at the XRP Ledger APEX 2024 event. 
  • Ripple shared news of its acquisition of custodian, Standard Custody, and XRPL EVM sidechain this week. 
  • XRP remains stuck under $0.50; Ripple’s announcements fail to catalyze gains in the altcoin. 

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. 

Daily Digest Market Movers: Ripple makes three major announcements this week

  • Ripple, a payment remittance firm, announced the upcoming launch of its dollar-pegged stablecoin, Real USD (RLUSD), on the XRP Ledger and Ethereum in 2024. 
  • Ripple’s CEO Brad Garlinghouse shared his thoughts on the Real USD at the XRP Ledger APEX 2024 and said that he intends to ensure stability in the crypto market.
  • The second major announcement is the cross-border payment firm’s acquisition of the digital asset custodian Standard Custody. 
  • Ripple’s acquisition will help the firm with its stablecoin project and make progress in real-world asset tokenization. 
  • The firm closed its acquisition of the custodian on June 11, and Jack McDonald of Standard Custody is set to be appointed as Ripple’s senior vice president of stablecoins. 

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

 

  • Back in 2023, Ripple acquired Metaco for its institutional crypto custody project and predicted that the market would reach $10 trillion by 2030 as banks offer digital custodial services to customers. 
  • The third major announcement is XRP Ledger’s EVM sidechain, which utilizes Axelar as the bridge protocol. This is expected to facilitate transfers between the XRP Ledger and EVM sidechains. 
  • Ripple users will explore new opportunities in DeFi and the Real World Asset (RWA) tokenization sector through the sidechain. 
  • XRP holders await developments in the Securities and Exchange Commission’s (SEC) lawsuit against Ripple. 

Technical analysis: XRP stuck under the $0.50 resistance 

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

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, altcoins, stablecoins FAQs

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.

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