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Ripple announces arrival of tokenized US Treasury bills on XRP Ledger, traders fearful as SEC cancels meeting

|ByEkta Mourya

  • Ripple announced the arrival of tokenized US Treasury bills on the XRP Ledger in an official tweet on X. 
  • XRP trader sentiment turns to fear on the Fear and Greed Index on CFGI.io. 
  • XRP erases recent gains, suffers nearly 7% decline on Thursday. 

Ripple (XRP) informed market participants of the arrival of tokenized US Treasury bills on the XRP Ledger through an official tweet on X. The announcement marks the firm’s strategic move at a time when XRP traders experience the uncertainty of the Securities & Exchange Commission (SEC) lawsuit. 

XRP trades above $0.58 at the time of writing, erasing nearly 7% of its value on the day. 

Daily digest market movers: Ripple makes key move while lawsuit ruling is awaited

  • Ripple revealed that tokenization platform OpenEden Labs is bringing tokenized US Treasury bills on the XRP ledger. 
  • The payment remittance firm is creating a fund to invest in tokenized T-bills and plans to allocate $10 million to the firm’s TBILL tokens as a part of the initiative. 
  • Ripple’s announcement failed to catalyze gains in XRP Ledger’s native token, XRP. 
  • XRP traders are fearful, per the Fear and Greed Index on CFGI.io. The sentiment among traders is neutral on the 1-day timeframe, and the indicator shows “fear” is dominant on the four hour timeframe. 
  • The SEC canceled its closed-doors meeting planned for August 1, per the regulator’s website. 
  • The cancelation of the closed-doors meeting comes at a time when traders await a ruling in the SEC vs. Ripple lawsuit. 
  • XRP army member and influencer behind the X handle @BabaCugs says that the regulator has closed its case against Ripple and decided to settle instead of pushing for the $2 billion in penalties. 
  • The influencer shared their comments in a tweet on X:
  • Its important to note that @BabaCugs does not quote a source and shares no evidence of the regulator closing its case. 

Technical analysis: XRP loses recent gains, bleeds 7% in one day

Ripple broke out of its downward trend on July 12. Since then the altcoin made steady gains, however in a recent turn of events, XRP suffered a steep correction, nearly 7% drop in a single day. 

XRP erased recent gains and dipped to a low of $0.5766 on Thursday. The altcoin is likely to collect liquidity in the Fair Value Gap (FVG) between $0.5404 and $0.5783. 

The Moving Average Convergence Divergence (MACD) indicator supports the decline with the MACD line dipping under the signal line. This shows there is underlying negative momentum in XRP price trend. 

XRP/USDT daily chart 

A daily candlestick close above $0.60 could invalidate the bearish thesis and XRP could rally towards $0.6666, the 78.6% Fibonacci retracement of the decline from March 12 top of $0.7440 to the July 5 low of $0.3823. 

Cryptocurrency metrics FAQs

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.

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