XRP rallies 4% on Tuesday, erasing recent losses as Ripple makes key announcement
- Ripple announced its RippleX Bug Bounty Program, inviting security researchers to find potential bugs in its projects.
- Ripple has already awarded over $1 million in bounties and its codebase spans Multi-Purpose Tokens, Oracles, Lending Protocol, DID, among others.
- XRP is likely to sweep liquidity at $0.4700 prior to the altcoin's attempt to break $0.6000 resistance.
Ripple (XRP) suffered a steep correction in the crypto market carnage on Monday. XRP slipped to a $0.4300 low, its lowest level since mid-July, on August 5.
But the altcoin has rallied 4% on Tuesday, erasing recent losses. However, technical indicators suggest XRP could revisit the $0.4700 support level prior to its recovery. XRP could then rally to its $0.6000 psychological resistance level following the liquidity sweep.
In other news, Ripple made an important announcement for security researchers on Tuesday.
Daily Digest Market Movers: Ripple announces Bug Bounty program post massive sell-off
- Bloody Monday, what the analysts like to call August 5, brought a steep correction in XRP price. The native token of the XRPLedger slipped to its monthly low of $0.43, alongside a massive decline in Bitcoin and top 30 cryptocurrencies.
- Ripple announced a reward program for security researchers as part of its RippleX Bug Bounty Program, early on Tuesday.
- The payment remittance firm called researchers to identify potential vulnerabilities in its code base. This includes XRP Ledger’s Multi-Purpose Tokens, Oracles, Lending Protocol, DID, among other projects.
️Calling all security researchers ️
— RippleX (@RippleXDev) August 6, 2024
Help keep the #XRPLedger safe, secure and reliable by identifying potential vulnerabilities in the blockchain codebase, and earn rewards for your efforts through the RippleX Bug Bounty Program.https://t.co/02lgnOoM0u
- Ripple notes that the firm has already awarded over $1 million in bounties to researchers recently.
- The firm announced a Bug Bounty Live Hack event, a 48-hour challenge to identify potential vulnerabilities, workshops and collaborations for security researchers.
Technical analysis: Ripple could sweep liquidity at $0.47 post recovery
XRP/USDT daily chart shows the likelihood of a liquidity sweep to support at $0.4700, prior to a recovery in Ripple price. The altcoin could extend losses by 7% and sweep $0.4700 level, the upper boundary of an imbalance zone, seen in the chart below.
Ripple’s target is the psychological resistance at $0.6000, and the altcoin could break into a rally following the liquidity sweep. XRP could face resistance at the Fair Value Gap (FVG) between $0.5188 and $0.5406.
The Moving Average Convergence Divergence (MACD) indicator supports the thesis of a decline in the asset, signaling a negative underlying momentum in the XRP price trend.
XRP/USDT daily chart
A daily candlestick close above $0.5500 could invalidate the bearish thesis and XRP could rally to its $0.6000 target.
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.
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