Ripple CEO says institutional adoption is coming, XRP extends gains by 5%
- Ripple CEO appreciated the CME Group and CF Benchmarks for adding the XRP-Dollar reference rate and indices.
- Brad Garlinghouse says institutional crypto products have trusted benchmarks for reference rates, fuels positive sentiment among traders.
- XRP extends gains by 5% on Friday, trades at $0.4719.
Ripple (XRP) traders’ sentiment turned positive on Friday, as CEO Brad Garlinghouse highlighted the addition of XRP-Dollar reference rate and indices to the CME Group and CF Benchmarks.
The CME Group is a leading derivatives marketplace, and CF Benchmarks is an FCA-regulated Benchmark administrator. The addition of XRP indices shows how the asset is heading towards finding utility in institutional crypto products.
XRP trades at $0.4719 at the time of writing.
Daily Digest Market Movers: Ripple traders positive with recent developments in XRP
- Ripple CEO Brad Garlinghouse tweeted about the addition of XRP-Dollar reference rates and indices to the CME Group and GF Benchmarks on X.
- The executive highlights that institutional crypto products have trusted reference rates, fueling a positive sentiment for XRP among market participants.
First step towards institutional crypto products is to have a trusted benchmark reference rate. Nice to see @CMEGroup and @CFBenchmarks collaborate on this for an XRP index. The market has spoken. https://t.co/cKqqMLswdw
— Brad Garlinghouse (@bgarlinghouse) July 11, 2024
- The CME Group announced in an official tweet that the XRP reference and indices go live on July 29 for users.
Starting July 29, benefit from transparent pricing on two new cryptocurrencies as CME CF Internet Computer-Dollar and XRP-Dollar Reference Rates and Real-Time Indices are added to our expanding suite of benchmarks. https://t.co/1kn5BPZi4C pic.twitter.com/jqcJPInSt9
— CME Group (@CMEGroup) July 11, 2024
- The CryptoEQ sentiment tracker identified a positive sentiment among XRP traders on Friday. The tracker calculates the sentiment through the asset’s mention in media and social media platforms.
- The Securities and Exchange Commission (SEC) vs. Ripple lawsuit has no further update since Attorney Fred Rispoli predicted that the legal battle will end in July 2024.
- SEC vs. Ripple lawsuit ruling could come out as early as July 13, according to this pro-crypto attorney
Technical analysis: XRP breaks past key resistance, extends gains
Ripple is in an upward trend, extending gains by nearly 5% on Friday. As sentiment among XRP traders stays bullish, the altcoin could rally towards resistance at the psychological barrier at $0.50.
At the time of writing, XRP trades at $0.4719.
Further up, XRP could rally towards $0.5205, nearly 10% gains from the current level, as seen in the XRP/USDT daily chart. The Moving Average Convergence Divergence (MACD) indicator shows a positive momentum of the Ripple price trend.
XRP/USDT daily chart
If XRP corrects, the altcoin could collect liquidity in the Fair Value Gap (FVG) between $0.40 and $0.44, as seen in the chart above. Further down, Ripple’s price could find support at the July 5 low of $0.3823.
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.
Recommended Articles
