Can Ripple’s Attempt to Launch Stablecoin Help XRP Surge?

  • Ripple revealed that it could be involved in a stablecoin development soon.
  • Selling pressure has driven XRP to fall below $0.70 since previously hitting $0.84.
  • If the MACD rises and RSI falls, then XRP may breakout into another rally.

As a blockchain-payment firm, Ripple (XRP) is familiar with expansion and providing payment solutions. On July 26, Ripple announced that it had followed a similar path. But this time it was not the usual infrastructural provision for cross-border payments.

According to Ripple, its November 2021 partnership with the Republic of Palau has resulted in the development of a stablecoin. Furthermore, Ripple added that the proposed stablecoin, which would be pegged to the U.S. Dollar would operate on the XRP Ledger (XRPL).

XRPL Gets to Work

For the unfamiliar, the XRP Ledger is the peer-to-peer public blockchain that allows for real-time transfer of XRP, and other fiat assets. Therefore, it is possible that the development, if concluded, could drive an increase in XRP adoption.

Consequently, this could also leave a positive impact on XRP. But from the technical outlook XRP which just partially came out of a battle with the U.S. SEC may not reap an uptrend immediately.

Based on CoinMarketCap’s data, the fourth-ranked cryptocurrency by market capitalization has lost 9.35% of its value in the last seven days. From the XRP/USD 4-hour chart, the decrease was a result of consistent selling pressure since XRP tapped $0.84.

XRP 7-Day Price Performance (Source: CoinMarketCap)

XPR Is Between Highs and Lows

Although XRP had formed a falling wedge since the price hit lower highs and lower lows, a bullish confirmation had not yet appeared at $0.67.

Furthermore, XRP’s decrease in volume means that an attempt at a sustained uptrend may not get the strength required.

Additionally, the Relative Strength Index (RSI) was 46.19. This reading is not considered to favor the bulls. If the RSI inches closer to 40 or below, then traders may look for a buying opportunity since XRP would have corrected.

But at the current state, caution is advised. Therefore, traders might need to look out for other supporting signals.

At press time the Moving Average Convergence Divergence (MACD) was 0.0042. But the 12-period EMA (blue) had risen above the  26-period EMA (orange). This signals a possible recovery by buyers.

However, the MACD would also need to rise above the zero-signal line to confirm a bullish market structure. If the MACD continues rising and the RSI keeps falling, then it could be a signal to long XRP.

In this case, the falling wedge mentioned above could lead to a breakout in the upward direction.

XRP/USD 4-Hour Chart (Source: TradingView)

In the interim, XRP has the potential to trend upwards provided it meets the above conditions. Meanwhile, Ripple also confirmed that it was in the first phase of the stablecoin deployment.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.

Comments

Post a Comment

Popular posts from this blog

Bitcoin Price Prediction: Here’s Why BTC Is Failing to Move Above $30k

Image
The largest cryptocurrency has according to on-chain insights from CryptoQuant “been lodged within a narrow corridor for the past three months.” The on-chain analytics platform claims that the answer lies in the protocol’s fundamental factors such as supply and miner activity. advertisement While we will explore Bitcoin’s fundamental position in a bit, BTC is still feeling the pinch of an aggressive bear camp – down 1% to $30,005. Trading volume is up to $14 billion with its market capitalization holding at $582 billion. The largest altcoin appears to be following in BTC’s footsteps, down 1.6% to $1,898. As discussed in the previous Analysis , Ethereum price must reclaim $1,900 support to keep the resumption of the uptrend above $2,000 intact. What’s Next if Bitcoin Price Loses $30,000 Support? The Bitcoin price consolidation in a narrow rectangular pattern, as shown on the daily chart reveals that the tug of war between bulls and bear is close to its tensile l
Read more

Japan Edges Toward Corporate Crypto Tax Reform

Image
Source: Oka/Adobe Japan is inching closer to reforming its strict crypto tax laws for corporations – in a bid to stop an “exodus” of crypto talent and capital from flowing overseas. Pressure to reform has mounted in recent years, with industry figures and opposition leaders alike all calling for change. More recently, the top financial regulator, the Financial Services Agency (FSA), has signalled that it also wants to modify the restrictive laws. But a final step in this process is approval from the National Tax Agency (NTA). But while the NTA is yet to publicly signal it will make the change, analysts believe that it is working on a tax reform bill that it hopes to unveil in parliament in the coming months. Late last week, the NTA released a set of FAQs that address the matter of crypto taxation. And while these did not directly make mention of any coming reform, Junya Izumi, an Associate Professor of Tax Law at the Chiba University of Commerce, pointed out on Twit
Read more

Bitcoin Price Holds At $27,400 – Will US Unemployment Claims Be The Catalyst?

Image
Bitcoin (BTC) price is back in the $27,000 zone with no signs of an exit soon. The king crypto is consolidating between the $28,551 and $26,578 zone as market players hope for a significant catalyst to trigger a rally. According to economists, United States unemployment claims could have a bearing on Bitcoin price as the number of Americans filing new claims for jobless benefits has been increasing. Nevertheless, as interest rates continue to increase, the U.S. labor market is gradually softening. Based on recent revelations, the U.S. economy added 253,000 jobs in April; the unemployment rate fell slightly to 3.4%. We just learned we created 253,000 jobs in April. That's 12.7 million jobs since I took office, an un employment rate that is the lowest since 1969, and the highest share of working age people in the workforce since 2008. My plan to invest in America is working. — President Biden (@POTUS) May 5, 2023 The following is a description of how U.S. un employment is a
Read more