- Ripple extended collaboration with Archax for tokenizing Real World Assets at the XRP Ledger APEX 2024 summit.
- The FCA-regulated digital securities exchange could help RWA projects bring their assets to XRP Ledger.
- XRP extended its seventh day of losses to nearly 8% on Friday, down to $0.48.
Ripple (XRP) announced that the payment remittance firm extended its collaboration with FCA regulated digital securities exchange Archax. The collaboration is focused on Real World Asset (RWA) tokenization, an emerging narrative in the ecosystem.
Archax will help bring projects to the XRPLedger, enabling the tokenization of millions of assets and enhancing the utility of Ripple’s blockchain.
XRP struggles to break past and close above key psychological resistance at $0.50. The altcoin wiped out nearly 8% in value in the past seven days on Binance.
Daily Digest Market Users: Ripple announces collaboration with FCA-regulated entity
- Ripple’s announcements at its annual summit XRP Ledger APEX 2024 are the current market movers for XRP in the absence of new updates in the Securities and Exchange Commission’s (SEC) lawsuit against Ripple.
- XRP holders are awaiting a ruling in the case. The latest move is Ripple’s letter supporting its motion to seal documents that contain sensitive financial information from the payment remittance firm.
- The last filing was made on May 29, 2024.
- In APEX 2024, Ripple has announced an extended collaboration with Archax, a regulated exchange that will bring RWA projects to the XRP Ledger. The goal is to tokenize millions of dollars in real world assets on the Ledger, boosting Ripple’s utility.
- Archax made an official announcement and dropped the details in a blog post.
Technical analysis: XRP could sink deeper into the red
Ripple is in a downward trend that started on March 12. The altcoin has been in a state of decline, down from the March 11 peak of $0.7440 to the April 13 low of $0.4188. Ripple could extend its losses by another 3% down to the April 19 low of $0.4665, as technical indicators flash bearish signals.
The Moving Average Convergence Divergence (MACD) indicator shows red histogram bars under the neutral line, signaling underlying negative momentum in the XRP price trend. The signal line crossed over MACD on Thursday, June 6, confirming the decline.
XRP/USDT 1-day chart
In the event of a daily candlestick close above $0.4955, the 23.6% Fibonacci retracement level of the decline between March 11 and April 13, the bearish thesis could be invalidated. XRP could rally towards the Fair Value Gap (FVG) between $0.5008 and $0.5164. Once the gap is filled, the altcoin is expected to resume its decline.
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.
