Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
The US Securities and Exchange Commission (SEC) lawsuit, recent events in the crypto market, including Spot Ether ETF approval by the SEC and Mark Cuban’s recent statements on the Presidential nomination are the key market movers influencing XRP on Wednesday.
Ripple is currently in an upward trend, forming higher highs and higher lows since July 8. XRP is likely to extend gains by 10.77% and hit its $0.70 target. The altcoin could find support at $0.5797 and $0.6058 (the 61.8% Fibonacci retracement of the decline from the March 11 top of $0.7440 to the July 5 low of $0.3823).
The momentum indicator, Moving Average Convergence Divergence (MACD), supports XRP gains. The green histogram bars correspond with underlying positive momentum in Ripple’s price trend.
XRP/USDT daily chart
A daily candlestick close under $0.6058 could invalidate the bullish thesis for XRP.
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.