- Ripple is preparing for its stablecoin launch as it announces $10 million investment in tokenized US Treasury bills.
- Ripple’s bullish updates have failed to catalyze gains in XRP amidst the market-wide crypto correction.
- XRP hovers around key support at $0.50 as traders await Bitcoin recovery and SEC lawsuit ruling.
Ripple (XRP) shared several key updates in its Q2 2024 report. The bullish updates in the report have failed to catalyze gains in XRP since the altcoin was hit by a market-wide crypto correction that pushed it under psychological support at $0.50.
XRP hovers around $0.50 at the time of writing, down nearly 7% on Monday.
Daily digest market movers: Ripple shares bullish developments, XRP crushed under market-wide correction
- Ripple shares details of its stablecoin, its features and a disclosure that its availability is subject to regulatory approval.
- In its Q2 2024 report published recently, the firm said it expects a “fair approach” and ruling in the Securities & Exchange Commission’s (SEC) lawsuit against Ripple.
- The judge is expected to rule on the issue of Ripple’s institutional sales of XRP and the settlement or fine to be imposed on the firm for the alleged securities law violation.
- XRP suffered a steep correction in the market-wide bloodbath that pushed Bitcoin under the $50,000 level.
- The crypto market observed $1.06 billion in liquidations within a 24-hour time frame and XRP dipped to $0.44 low, before beginning a recovery.
- XRP is down nearly 7% on the day, and the asset is hovering close to the psychologically important $0.50 level on Monday.
Technical analysis: XRP attempts comeback above $0.50
Ripple broke out of its downward trend on July 13. The altcoin hit a local top of $0.6586 on July 31. Since then the altcoin has suffered a deep correction, down to $0.4319.
Ripple dipped into the imbalance zone between $0.4426 and $0.4425 as seen in the XRP/USDT daily chart. The inefficiencies under $0.50 have been filled, meaning Ripple can begin its recovery.
The Relative Strength Index (RSI) reads 35.90 close to the oversold zone, meaning there is an opportunity for sidelined traders to enter. XRP could target the $0.60 level in its rally, a 22% gain from the current price.
XRP/USDT daily chart
A daily candlestick close under $0.45 support could invalidate the bullish thesis and signal further correction in the altcoin.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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.
Recommended Content
Editors’ Picks
Sen Warren, Democrats clamp down on election gambling amid Polymarket milestone
Polymarket has seen a surge in trading volume since July as investors' interest in the presidential election speculation has soared. With the hike in election gambling, Democrats moved to enforce a ban on election betting on Monday.
Ethereum on route to recovery after sustaining over $380 million in liquidations
Ethereum (ETH) is down 11% on Monday after taking heavy losses from the general crypto market crash. While the decline heavily hit long traders, they look set to stage a comeback following increasing exchange outflows.
Bitcoin could repeat post-COVID style rise: Bitwise
In a memo to investors on Monday, Bitwise Chief Investment Officer (CIO) Matt Hougan noted that the recent crypto market crash has provided an "opportunity" for Bitcoin (BTC) to replicate a similar move to its rise post-COVID lockdown.
XRP suffers 7% drop on Monday, hovers around $0.50 support
Ripple (XRP) shared several key updates in its Q2 2024 report. The bullish updates in the report have failed to catalyze gains in XRP since the altcoin was hit by a market-wide crypto correction that pushed it under psychological support at $0.50.
Bitcoin: Can BTC rebound from the recent market challenge?
Bitcoin’s (BTC) price failed to close above $70,000 at the beginning of the week and dropped to $64,000 by Friday. Mt. Gox continues moving Bitcoin to exchanges for repayments to creditors while the Federal Open Market Committee (FOMC) decided to hold US interest rates steady.