XRP News Today: Ripple Hits the Stablecoin Market Amidst SEC Plans to Appeal

The Thursday Overview

On Thursday, XRP rallied 3.27%. Reversing a 2.01% loss from Wednesday, XRP ended the session at $0.5935.

Ripple Enters the Stablecoin Market with a Stablecoin Launch

On Thursday, Ripple announced plans to launch USD pegged stablecoin. According to the press release, the stablecoin will peg 1:1 to the US dollar. The stablecoin will be 100% backed by US dollar deposits, short-term government treasuries, and other cash equivalents.

The stablecoin will be available on the XRP Ledger and Ethereum at launch. However, Ripple plans to avail the stablecoin on other blockchains and DeFi protocols.

Ripple President Monica Long said,

“Issuing our stablecoin on the XRP Ledger and Ethereum will serve as a pivotal entry point to unlock new opportunities for institutional and DeFi use cases across multiple ecosystems. The XRP Ledger’s native capabilities, including a decentralized exchange and automated market maker, were built to utilize XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem.”

Ripple CEO Brad Garlinghouse shared the news on X (formerly Twitter), saying,

“Launching a stablecoin is a natural step for Ripple as we bridge the gap between traditional finance and crypto. We have 1/ the years of experience 2/ regulatory footprint 3/ a strong balance sheet and 4/ a network with near-global payout coverage, to offer the best of crypto-enabled payments using XRP and our (future) stablecoin together.”

The latest move came as the SEC vs. Ripple case nears its conclusion. By entering the stablecoin market, Ripple could have unimpeded access to the US market.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. However, the SEC plans to appeal the Programmatic Sales ruling may impede Ripple from reentering the US market with XRP.

XRP Price Action

Daily Chart

XRP sat below the 50-day EMA while hovering above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

An XRP break above the 50-day EMA would support a move toward the $0.6609 resistance level.

SEC scrutiny and SEC vs. crypto-related chatter warrant investor consideration.

Conversely, a fall through the 200-day EMA and the $0.5740 support level would bring the trend line into play.

The 14-day RSI reading, 45.76, suggests an XRP fall to the trend line before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP hovered below the 50-day and 200-day EMAs. The EMAs sent bearish price signals.

An XRP break above the 50-day and 200-day EMAs could give the bulls a run at the $0.6609 resistance level.

However, failure to return to the $0.60 handle would leave the $0.5740 support level in play.

The 4-hourly RSI, with a reading of 49.56, indicates an XRP fall to the trend line before entering oversold territory.