- Ripple stablecoin prepares for launch in the next few weeks, according to CEO Brad Garlinghouse.
- RLUSD could benefit XRP through stablecoin gas transaction activity, says analyst.
- XRP trades at $0.53, corrects slightly on Tuesday.
Ripple (XRP) recently announced the launch of its stablecoin project, Ripple USD (RLUSD). In an interview at Korea Blockchain Week in the first week of September, CEO Brad Garlinghouse said that the asset’s launch is weeks away.
XRP exchanges hands at $0.5387, and traders are keeping their eyes peeled for an RLUSD launch date.
Daily digest market movers: Analyst predicts XRP stands to gain from RLUSD
- Crypto analyst behind the X handle @Sentosumosaba said in a recent tweet that XRP Ledger’s native token stands to gain from Ripple stablecoin launch.
- RLUSD launch could benefit the altcoin as it would contribute to higher activity on the ledger and XRP is the gas token.
- Analyst expects XRP to gain from higher demand for the altcoin.
Just as #ETH is used for gas, #XRP is also used for gas (among other things). Since the SEC Docs explained ODL is price neutral, bring on as much of that stablecoin gas transaction activity on the #XRPL Mainnet as possible. Trillions please.
— Crypto Eri Carpe Diem (@sentosumosaba) September 8, 2024
Every currency would be nice.
- While on-demand liquidity provided to institutional investors does not typically influence price, demand for the gas token could catalyze gains.
- In a September 4 fireside chat at Korea Blockchain Week, Brad Garlinghouse said that the launch of Ripple stablecoin is only weeks away.
- CTO David Schwartz informed crypto market participants in a recent tweet that RLUSD will be available to institutions exclusively, compared it to Circle’s stablecoin, USD Coin (USDC), and Tether’s USD Tether (USDT).
Technical analysis: XRP corrects slightly on Tuesday
Ripple is currently in a downward trend. The altcoin could extend its losses to the September 6 low of $0.5026. This marks a 6.7% decline in XRP from the current price level. The Moving Average Convergence Divergence (MACD), a momentum indicator, supports the bearish thesis.
The red histogram bars under the neutral line on MACD are indicative of an underlying negative momentum in XRP price.
XRP/USDT daily chart
A daily candlestick close above $0.6000, a key psychological level for XRP, could invalidate the bearish thesis. XRP could target the upper boundary of the Fair Value Gap (FVG) at $0.6217, the July 31 low for the altcoin.
Cryptocurrency prices FAQs
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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