XRP price ranges below $0.60 despite Ripple stablecoin launch announcement


  • Ripple announced plans to release a USD-backed stablecoin on the XRPLedger and Ethereum blockchains in 2024. 
  • Ripple’s move is aimed at boosting the utility and liquidity on the XRPLedger, however XRP price continues to decline.
  • XRP price is range bound below the psychologically important $0.60 level on Friday. 

Ripple (XRP) price is stuck within a tight range between its February 17 low of $0.5643 and March 18 high of $0.6686. On Friday, the altcoin traded below the psychologically important $0.60 level, at $0.5807. 

Ripple announced the launch of a 1:1 USD backed stablecoin on the XRPLedger and Ethereum blockchain, to be released in 2024. The announcement failed to catalyze a recovery in the altcoin. 

Daily digest market movers: Ripple stablecoin news fails to catalyze XRP gains

  • Ripple announced its foray in the $150 billion market with a stablecoin pegged 1:1 with the US Dollar, on April 4. 
  • The payment remittance firm said the stablecoin will first be released on the XRP Ledger and Ethereum, in 2024. 
  • Ripple explains that the move is aimed at both institutional and DeFi realms and the payment giant has plans to enhance its payment infrastructure for clients. 
  • The cross-border payment remittance firm acknowledges that crypto’s future is multichain and a stablecoin needs interoperability for adoption by users. 
  • The firm explains that the USD-backed token will be released on DeFi apps and will have compatibility with the existing DeFi infrastructure. 
  • While the announcement marks a watershed moment for the payment firm that is currently battling the US Securities and Exchange Commission (SEC) in court, it failed to catalyze gains in XRPLedger’s native token XRP. 

Technical analysis: XRP price stuck in tight range despite positive development

XRP price has been in a decline since the March 11 year-to-date peak of $0.7440. The altcoin has failed to make a comeback to the local top, despite numerous attempts and XRP is range bound between the February 17 low of $0.5643 and March 18 high of $0.6686 for nearly a month and half. 

XRP price is likely to sweep liquidity at the daily support level, $0.5386. This level has acted as support since February 15, and held strong through multiple retests. The altcoin could bounce off the support and fill the Fair Value Gap (FVG) between $0.6185 and $0.6204, on the daily price chart

The red bars below the neutral line on the Moving Average Convergence/ Divergence (MACD) indicator support the thesis of a liquidity sweep at support. 

XRP

XRP/USDT 1-day chart 

A daily candlestick close above $0.6147, the 50% Fibonacci placeholder of the rally from January 31 low to March 11 peak of $0.7440, could invalidate the bearish thesis. XRP price faces resistance at the upper boundary of the FVG at $0.6204 and the daily resistance level that held steady for nearly two months now, at $0.6686. 

Open Interest, funding rate FAQs

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ripple extends gains by 5% on Friday as CEO hints at institutional crypto products with CME XRP-Dollar index

Ripple extends gains by 5% on Friday as CEO hints at institutional crypto products with CME XRP-Dollar index

Ripple (XRP) traders’ sentiment turned positive on Friday, as CEO Brad Garlinghouse highlighted the addition of XRP-Dollar reference rate and indices to the CME Group and CF Benchmarks. 

More Ripple News

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

OpenAI, the American tech firm behind the Large Language Model ChatGPT, announced five levels towards building an Artificial General Intelligence (AGI). Employees at the firm told Bloomberg that with ChatGPT, Open AI is currently at level one. 

More Worldcoin News

VeChain break above descending trendline sparks rally speculation

VeChain break above descending trendline sparks rally speculation

VeChain price breaks above the descending trendline, suggesting a bullish move. Sideline buyers can accumulate VET between $0.0247 and $0.0239. A daily candlestick close below $0.0204 would invalidate the bullish thesis.

More VeChain News

Bitcoin Weekly Forecast: Investors wonder if BTC troubles are behind

Bitcoin Weekly Forecast: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows. 

More Bitcoin News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows. On-chain analytics indicate that whales are accumulating BTC during dips, potentially foreshadowing an imminent rally in the days ahead.

 

Read full analysis

BTC

ETH

XRP