- Ripple’s announcement of its stablecoin triggered a rapid surge in XRP’s price, experiencing a notable 10% increase within an hour.
- The stablecoin will be backed by deposits in US dollars and short-term government securities.
- Despite recent market downturns, XRP managed to break above EMA trend lines.
In response to Ripple’s initiative to debut its stablecoin on both the Ethereum and XRP Ledger blockchains, XRP experienced a sudden surge in value, witnessing a significant 10% increase within a mere hour.
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The move underscores Ripple’s strategic response to the increasing demand for stablecoins among traders, who seek refuge from the volatile price swings inherent in major cryptocurrencies like Bitcoin and Ethereum.
Scheduled for release later this year, Ripple’s stablecoin will be backed by deposits in US dollars, short-term US government securities, and other cash equivalents. The initial rollout will see the stablecoin available on Ripple’s institutional-grade XRP Ledger and the Ethereum blockchain, adhering to Ethereum’s ERC-20 token standard.
The recent market downturn, experienced at the onset of the month and quarter, also impacted XRP negatively. Data indicates a significant liquidation of nearly $2.85 million, coinciding with a decline in XRP’s price to its lowest point in two weeks. Notably, the “Network Realized Profit/Loss” metric suggests a loss of $25.67 million for XRP investors following the price decline.
However, despite these challenges, XRP managed to break above its EMA trend lines on the 4-hour price chart, reaching a high of $0.617. Although encountering resistance at this level, XRP continues to trade at $0.594, marking a 2.4% surge in the last 24 hours. Moving forward, the dynamics of XRP’s price remain uncertain, with potential resistance at the 100-day EMA and the possibility of either a decline towards $0.52 or a surge towards critical resistance levels at $0.69 and $0.74.
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