XRP sustains above $0.50 as traders digest news of Ripple XRP Ledger entry in the Japanese market
- Ripple announced its partnership with Tokyo-based Hashkey DX to bring XRP Ledger to Japan.
- XRP holders digest the news of Ripple’s foray into Japan, and SEC response from April 29.
- XRP hovers around key support at $0.50, early on Wednesday.
Ripple (XRP) sustained above $0.50, a key support level, on Wednesday. XRP price is down nearly 6% in the past ten days. The altcoin is in a confirmed downward trend, and wiped out all gains since February.
XRP holders are currently digesting the Securities and Exchange Commission (SEC) response filing to Ripple’s motion to strike expert testimony. Ripple announced its partnership with HashKey DX, a Tokyo-based consulting company, to bring XRP Ledger to the Japanese market.
Daily digest market movers: Ripple forays into Japan, XRP Ledger enters market with partnership
- Ripple announced a partnership with Tokyo-based specialized consulting company HashKey DX, on April 30.
- The firm introduced the XRP Ledger powered enterprise solutions to the Japanese market.
- The HashKey Group has over 4,000 registered companies, 23 banks, and 4,300 suppliers for its blockchain-powered supply chain finance solutions.
- XRP Ledger’s enterprise solutions will be offered to Japanese clients through the collaboration between Ripple and SBI Ripple Asia.
- The blockchain solutions will be built on the ledger and Japan’s SBI Group companies will be the first corporation to utilize supply chain finance in the market.
We’re excited to announce a partnership between @Ripple, @HashKeyGroup, and SBI Group ushering in #XRPL-powered solutions, starting with supply chain finance, to Japan's enterprise landscape.
— Ripple (@Ripple) April 30, 2024
Learn more about this innovative partnership: https://t.co/GFUNdu1ci2
- XRP holders are currently digesting the SEC’s response to the legal battle between the cross-border payment remittance firm and the regulator. Find out more about it here.
Technical analysis: XRP hovers around $0.50, extends decline
Ripple extended its decline on Wednesday, hovering around support at $0.50, early on Wednesday. The altcoin has consistently formed lower highs and lower lows since March 11, at a top of $0.7440.
XRP is hovering around key support at $0.50. Relative Strength Index (RSI), a momentum based oscillator, is at 39.40, likely heading towards the oversold zone below 30. RSI attempted to break past the neutral line on April 22, however, it turned out to be a fakeout. RSI is on a downward trend alongside the price, which confirms the decline.
The Moving Average Convergence Divergence (MACD) indicator shows red histogram bars below the neutral line on the weekly time frame and on shorter time frames, 4 hours. However, on the daily chart, MACD shows green histogram bars, each shorter than the previous one, above the neutral line.
The positive momentum underlying the XRP price trend is likely waning.
XRP/USDT 1-day chart
A daily candlestick close above $0.50 could invalidate the bearish thesis and $0.5314 is the next immediate resistance for XRP. This coincides with the 50% Fibonacci retracement of the decline from April 9 top to April 13 low of $0.4203.
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.
