Ripple President breaks silence on upcoming RLUSD stablecoin’s impact on XRP
- Ripple President Monica Long commented on the upcoming stablecoin Real USD and its impact on XRP.
- Long said stablecoin and XRP are complementary and additive, addressing the concerns over the RLUSD launch.
- XRP edges higher and holds above $0.47 on Friday.
Ripple (XRP) President Monica Long recently appeared on The Block Podcasts and addressed XRP trader concerns about the stablecoin’s launch. The payment remittance firm’s stablecoin is called Real USD (RLUSD) and is slated for launch in 2024.
Long shared her views on the stablecoin, its role in the ecosystem, the Real World Asset (RWA) narrative, and the institutional pivot on crypto.
Daily digest market movers: Ripple President answers burning questions on Real USD and XRP
- Ripple President Monica Long spoke about the firm’s upcoming stablecoin, Real USD, and its relationship with XRP.
- In the podcast interview, Long answered questions on the nature of the stablecoin and discussed the RWA narrative and shift in institutional investors and their stance on crypto.
Ripple's upcoming stablecoin will 'complement' XRP@Ripple President @MonicaLongSF joins @fintechfrank on The Scoop to discuss the recent growth and expansion of Ripple's product offerings, including an upcoming stablecoin
— The Block Podcasts (@TheBlockPods) June 26, 2024
OUTLINE
00:00 Introduction
00:50 Ripple Updates… pic.twitter.com/P0sTl2qXS9
- When asked about RLUSD and its impact on XRP, Long said that the stablecoin “complements” Ripple and it is “additive.”
- Therefore, Ripple’s stablecoin is designed to enhance the cross-border payment remittance narrative and seamless transfers rather than hamper XRP’s utility.
- Long explained that XRP will continue to play central in Ripple’s payment solutions, RLUSD will be introduced to complement the use of the altcoin.
- The last update in the SEC vs. Ripple lawsuit is that the regulator is asking for $102.6 million in fines against Ripple’s proposed $10 million.
Technical analysis: XRP could extend losses over the weekend
Ripple has been in a state of decline since March 11. The altcoin is struggling to break past resistance at $0.50 and could extend losses by 5%, dipping to support at $0.4508, the June 7 low.
The red histogram bars on the Moving Average Convergence Divergence (MACD) momentum indicator supports this bearish narrative.
XRP/USDT daily chart
If Ripple begins recovery, XRP could climb toward the nearest Fair Value Gap between $0.4825 and $0.4841. Further up, in its rally towards the psychological barrier at $0.50, Ripple faces resistance at $0.4955, the 23.6% Fibonacci retracement of the drop from the March 11 top of $0.7440 to the April 13 low of $0.4188.
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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