- XRP corrects on Wednesday, down nearly 4% to $0.5644.
- Ripple releases details of its stablecoin, RLUSD, says the asset is geared toward regulatory compliance.
- Ripple mentions Clarity of Payments Stablecoin Act, which if passed could support innovation in the asset class.
Ripple (XRP) shared details of its stablecoin project Ripple USD (RUSD) in a blog published on Tuesday. The cross-border payment remittance firm discusses relevant legislation and plans to support the digital asset economy through RLUSD.
XRP erased nearly 4% value on Wednesday despite that announcement with the coin trading at $0.5644.
Daily digest market movers: XRP corrects even as Ripple discusses RLUSD application, future plans
- Ripple discussed the demand for its stablecoin RLUSD, regulatory compliance, and the regulation that could support innovation in stablecoins and blockchain technology in the US.
Stablecoins combine the speed, security, and efficiency of blockchain with the trust of USD. As cash use declines, more are turning to stablecoins for fast, secure, low-cost payments.
Get the latest on emerging trends in stablecoin payments: https://t.co/stVjXAjOKQ
— Ripple (@Ripple) September 17, 2024
- Ripple’s post says stablecoins combine speed, security and efficiency of the blockchain, and it argues the declining use of cash paves way for adoption of stables.
- Ripple is used to offering cross-border payment remittance at low cost, and the launch of RLUSD for stablecoins would assure the same.
- While most cryptocurrencies face the double spend problem, where a token can be spent more than once through an alteration in the blockchain, stablecoins eliminate this challenge and provide a reliable and low-cost alternative to users.
- Ripple CTO David Schwartz said in a recent tweet on X that RLUSD will only ever be available to institutions and compared the asset to Circle’s USD Coin (USDC) and USD Tether (USDT).
Technical analysis: XRP could lose 9% to sweep low at $0.5188
XRP attempted to break out of its multi-month downward trend on four occasions between July and September 2024 to no avail. XRP remains range-bound between the September 6 low of $0.5026 and the August 7 high of $0.6434.
The Relative Strength Index (RSI), a momentum indicator, reads neutral at 50.
XRP could erase 8.5% of its value and extend losses to the lower boundary of the Fair Value Gap (FVG) between $0.5188 and $0.5785, as seen in the XRP/USDT daily chart.
XRP/USDT daily chart
XRP could also rally toward the FVG between $0.5970 and $0.6217, if the asset successfully breaks out of the downward trend.
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.
