XRP climbs above $0.54 as Ripple announces exchange partners for Ripple USD stablecoin
- XRP trades at $0.5420 on Tuesday.
- Ripple announced its exchange partners for the stablecoin project at Swell 2024 in Miami.
- XRP could gain 10% and rally toward $0.60, the psychologically important price level for the altcoin.
Ripple (XRP) holds steady above key support at $0.54 on Tuesday as payment remittance firm Ripple makes announcements regarding exchange partners for its stablecoin RLUSD that is in the final stages of its launch.
Daily Digest Market Movers: XRP gears up for gains with key announcements from Ripple
- Ripple, the cross-border payment remittance firm, informed users that upon receiving regulatory approval its stablecoin project RLUSD will be made globally available to financial institutions and firms including Uphold, BitStamp, Bitso, Moonpay, Indereserve, CoinMENA and Bullish.
Today at #RippleSwell, we’re proud to announce our Ripple USD exchange partners.
— Ripple (@Ripple) October 15, 2024
Upon regulatory approval, $RLUSD will be globally available for institutions and users from @UpholdInc, @BitStamp, @Bitso, @Moonpay, @Indereserve, @CoinMENA, and @Bullish. https://t.co/iZ7L1MHpn3
- Monica Long, President of Ripple Labs, said that the firm’s stablecoin RLUSD is "operationally ready," awaiting regulatory approval by the New York Department of Financial Services (NYDFS).
- The firm is yet to announce a date for an RLUSD launch.
- Ripple informed market participants that the firm added ex-Federal Deposit Insurance Corporation (FDIC) chair Sheila Bair and David Puth, the former CEO of Centre.
- Centre is a consortium responsible for setting standards for USD Coin (USDC).
Technical analysis: XRP could rally 11% to hit a psychologically important level
Ripple has been in a downward trend for over a year now. The altcoin could rally 10.26% and hit the psychologically important $0.60 level. This marks a key resistance level for XRP. The Relative Strength Index (RSI) reads 46, under the neutral level of 50.
The Moving Average Convergence Divergence (MACD), a momentum indicator, shows green histogram bars above the neutral line as the MACD line crosses above the signal line. This means there is underlying positive momentum in XRP price trend.
Technical indicators point at room for gains in XRP price.
XRP/USDT daily chart
However, a daily candlestick closing under $0.50 would invalidate the bullish thesis.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and had to pay a $125 million civil fine.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
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.
