- 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.
