XRP dips 2% even as crypto exchange Uphold extends support to Ripple stablecoin
- XRP trades at $0.5334 on Tuesday, down 2% on the day.
- Uphold supports Ripple’s stablecoin RLUSD, the crypto exchange comments on platform integration.
- XRP gears up for a nearly 7% decline in its price.
Ripple (XRP) lost nearly 2% of its value on Tuesday, October 22. The native token of the XRPLedger could extend its losses as XRP holders speculate the future of the altcoin, the Securities & Exchange Commission’s (SEC) lawsuit against Ripple and Ripple USD’s (RLUSD) utility and adoption among institutions.
Ripple made several announcements, such as listing official exchange partners and teasing the launch of the stablecoin with no fixed date, during the Swell 2024 event. Since then the focus has shifted to the SEC’s appeal against the final ruling in the Ripple lawsuit, the payment firm’s counter-appeal and Bitwise’s XRP ETF application.
Daily Digest Market Movers: Ripple’s latest developments weigh on XRP price
- SEC vs. Ripple lawsuit and the process of appeals, Ripple’s stablecoin RLUSD and related announcements, Bitwise’s XRP ETF application and Ripple co-founder Chris Larsen’s donation to Kamala Harris’ presidential campaign are the key market movers for the altcoin on Tuesday.
- SEC recently made its legal documents related to the appeal available online. The reveal assuages XRP holders’ concern regarding the altcoin’s legal clarity. The SEC has not raised questions about the nature of XRP as a non-security and the appeal is limited to the final ruling in the SEC vs. Ripple lawsuit.
- At Ripple Swell 2024, its annual flagship event, the firm made a series of announcements, including a list of exchange partners and their role, as well as plans for the stablecoin.
- While no launch date was fixed for Ripple USD, Uphold and other strategic exchange partners have supported the altcoin and announced its integration with their platforms.
UPHOLD NEVER DELISTED #XRP AND THEY WILL LAUNCH @RIPPLE´S $RLUSD ➡️ "WE HAVE A LARGE CONTIGENCY OF #XRP HOLDERS SINCE WE NEVER DELISTED." @UpholdInc
— XRP DROPZ (@DROPZXRP) October 22, 2024
➡️ STABLECOINS ARE "THE KILLER USE CASE" FOR UTILITY AND CRYPTO
SOURCE @ThinkingCrypto1: https://t.co/TK5GdF7VS8 https://t.co/D02B4PMv2j pic.twitter.com/mDTgRXOZ0S
- Ripple’s stablecoin will open doors to XRP utility as well. The native token of the XRP Ledger is likely to see a boost in its adoption and note a positive impact, according to Ripple President Monica Long.
- Bitwise’s XRP ETF application could see progress following the US presidential election outcome. Nate Geraci, President of the ETF Store, says that Solana and XRP ETFs look unlikely under a Kamala Harris presidency.
Technical analysis: XRP risks nearly 7% drop
Ripple has been in a downward trend since its March 11 top of $0.7440. The altcoin could extend losses and sweep liquidity at the psychologically important $0.50 level. This level lies within an imbalance zone, between $0.4780 and $0.5136, on the XRP/USDT daily price chart.
XRP, therefore, risks nearly 7% (6.43%) decline in its price. The altcoin could find support at $0.5138, the August 6 high for the altcoin.
The Relative Strength Index (RSI) reads 43. This is under the neutral level at 50, but the RSI is sloping downwards, consistent with negative momentum in a token’s price trend.
XRP/USDT daily price chart
A daily candlestick close above the $0.6000 level, an important resistance level for the altcoin, could invalidate the bearish thesis. XRP could test resistance at the lower boundary of an imbalance zone at $0.6069.
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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