XRP trades at $0.53 but could gain from Ripple stablecoin, analyst claims
- Ripple stablecoin prepares for launch in the next few weeks, according to CEO Brad Garlinghouse.
- RLUSD could benefit XRP through stablecoin gas transaction activity, says analyst.
- XRP trades at $0.53, corrects slightly on Tuesday.
Ripple (XRP) recently announced the launch of its stablecoin project, Ripple USD (RLUSD). In an interview at Korea Blockchain Week in the first week of September, CEO Brad Garlinghouse said that the asset’s launch is weeks away.
XRP exchanges hands at $0.5387, and traders are keeping their eyes peeled for an RLUSD launch date.
Daily digest market movers: Analyst predicts XRP stands to gain from RLUSD
- Crypto analyst behind the X handle @Sentosumosaba said in a recent tweet that XRP Ledger’s native token stands to gain from Ripple stablecoin launch.
- RLUSD launch could benefit the altcoin as it would contribute to higher activity on the ledger and XRP is the gas token.
- Analyst expects XRP to gain from higher demand for the altcoin.
Just as #ETH is used for gas, #XRP is also used for gas (among other things). Since the SEC Docs explained ODL is price neutral, bring on as much of that stablecoin gas transaction activity on the #XRPL Mainnet as possible. Trillions please.
— Crypto Eri Carpe Diem (@sentosumosaba) September 8, 2024
Every currency would be nice.
- While on-demand liquidity provided to institutional investors does not typically influence price, demand for the gas token could catalyze gains.
- In a September 4 fireside chat at Korea Blockchain Week, Brad Garlinghouse said that the launch of Ripple stablecoin is only weeks away.
- CTO David Schwartz informed crypto market participants in a recent tweet that RLUSD will be available to institutions exclusively, compared it to Circle’s stablecoin, USD Coin (USDC), and Tether’s USD Tether (USDT).
Technical analysis: XRP corrects slightly on Tuesday
Ripple is currently in a downward trend. The altcoin could extend its losses to the September 6 low of $0.5026. This marks a 6.7% decline in XRP from the current price level. The Moving Average Convergence Divergence (MACD), a momentum indicator, supports the bearish thesis.
The red histogram bars under the neutral line on MACD are indicative of an underlying negative momentum in XRP price.
XRP/USDT daily chart
A daily candlestick close above $0.6000, a key psychological level for XRP, could invalidate the bearish thesis. XRP could target the upper boundary of the Fair Value Gap (FVG) at $0.6217, the July 31 low for the altcoin.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
