- XRP loses 3% of its value on Wednesday, trading at $0.5881.
- Bitwise files S-1 registration with SEC, confirming its intention to register the first US-based Spot XRP ETF.
- XRP tests support at $0.5946, risks decline to a 50-day EMA at $0.5531.
Ripple (XRP) lost value on Wednesday even as asset management giant Bitwise affirms its intent to register the United States’ first Spot XRP ETF. Bitwise filed its S-1 registration, a crucial step in the process of registering a Spot crypto ETF with the Securities & Exchange Commission (SEC).
Daily Digest Market Movers: Bitwise takes XRP Spot ETF filing process forward on Wednesday
- XRP Spot ETF could debut in the US if asset manager Bitwise receives approval from the US SEC.
- The firm filed its S-1 registration, affirming its intent to launch the first Spot ETF for XRP Ledger’s native asset.
- S-1 filing is an initial registration form, considered a requirement by the regulator for securities that meet the proper criteria in the US. The filing is made before the securities product is approved and then listed on a national stock exchange.
- In an associated press release, Hunter Horsley, Bitwise CEO said,
“At Bitwise, we believe blockchains will usher in new, apolitical monetary assets and permissionless applications for the 21st century. It’s why for the past seven years we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP.”
- XRP traders are digesting the news of the ETF, while they keep their eyes peeled for developments in the SEC vs. Ripple lawsuit.
- The lawsuit ended in August 2024, with a ruling which was considered a partial victory for both Ripple and the SEC. However, there is a likelihood that the regulator will appeal the ruling. This impacts XRP holders as the asset could lose its legal clarity.
Technical analysis: XRP risks further decline
Ripple’s XRP is in a multi-month downward trend as seen in the XRP/USDT daily chart. The altcoin trades at $0.5709 after testing the $0.5946 support on Wednesday. The Moving Average Convergence Divergence (MACD) indicator shows that the XRP price trend likely has underlying negative momentum as the streak of green histogram bars ends.
The MACD line has crossed under the signal line, another sign of a likely trend reversal. XRP could sweep liquidity at the 200-day Exponential Moving Average (EMA) at $0.5564 and extend its decline by 11.9% to $0.5026, the September 6 low for XRP.
XRP/USDT daily chart
A daily candlestick close above support at $0.5946 could invalidate the bearish thesis. XRP could attempt a rally to $0.6602, the 50% Fibonacci retracement of the decline from the July 2023 top of $0.9380 to the July 2024 low.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.