- XRP trades at $0.5420 on Tuesday.
- Ripple announced its exchange partners for the stablecoin project at Swell 2024 in Miami.
- XRP could gain 10% and rally toward $0.60, the psychologically important price level for the altcoin.
Ripple (XRP) holds steady above key support at $0.54 on Tuesday as payment remittance firm Ripple makes announcements regarding exchange partners for its stablecoin RLUSD that is in the final stages of its launch.
Daily Digest Market Movers: XRP gears up for gains with key announcements from Ripple
- Ripple, the cross-border payment remittance firm, informed users that upon receiving regulatory approval its stablecoin project RLUSD will be made globally available to financial institutions and firms including Uphold, BitStamp, Bitso, Moonpay, Indereserve, CoinMENA and Bullish.
- Monica Long, President of Ripple Labs, said that the firm’s stablecoin RLUSD is “operationally ready,” awaiting regulatory approval by the New York Department of Financial Services (NYDFS).
- The firm is yet to announce a date for an RLUSD launch.
- Ripple informed market participants that the firm added ex-Federal Deposit Insurance Corporation (FDIC) chair Sheila Bair and David Puth, the former CEO of Centre.
- Centre is a consortium responsible for setting standards for USD Coin (USDC).
Technical analysis: XRP could rally 11% to hit a psychologically important level
Ripple has been in a downward trend for over a year now. The altcoin could rally 10.26% and hit the psychologically important $0.60 level. This marks a key resistance level for XRP. The Relative Strength Index (RSI) reads 46, under the neutral level of 50.
The Moving Average Convergence Divergence (MACD), a momentum indicator, shows green histogram bars above the neutral line as the MACD line crosses above the signal line. This means there is underlying positive momentum in XRP price trend.
Technical indicators point at room for gains in XRP price.
XRP/USDT daily chart
However, a daily candlestick closing under $0.50 would invalidate the bullish thesis.
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.
