Last updated on May 18th, 2024 at 12:19 pm
Amid regulatory challenges and legal battles, Ripple announces the launch of a USD-backed stablecoin, propelling XRP’s momentum.
READ ALSO: Ripple vs. SEC: Pro-XRP Lawyer Unravels $480M Allegation Impact on Crypto Firm
Ripple’s Major Announcement
Ripple, the sixth-largest cryptocurrency, gains momentum following the announcement of its stablecoin pegged 1:1 to the USD. The stablecoin will operate on both the XRP Ledger and the Ethereum blockchain, showcasing Ripple’s expansion into the stablecoin market.
1/ The stablecoin market is booming – around $150B today, and projected to soar past $2.8T by 2028. There's a clear demand for trust, stability, and utility.
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That's why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…
— Ripple (@Ripple) April 4, 2024
XRP Price Surge and Speculation
XRP price surged nearly 5% in response to the news, prompting speculation on whether XRP will break the $1 mark. Despite regulatory hurdles, the cryptocurrency community remains optimistic about XRP’s potential for growth.
Ripple’s native crypto, XRP, has faced regulatory scrutiny from the US Securities and Exchange Commission (SEC), resulting in price volatility. Despite a 4% decline on a year-to-date basis, XRP’s recent surge signals resilience in the face of regulatory challenges.
Market Analysis and Technical Outlook
Technical analysis suggests that XRP may have bottomed out, with the altcoin’s Relative Strength Index (RSI) indicating a potential buying opportunity for traders. XRP’s price movement is anticipated to fill the Fair Value Gap (FVG), potentially leading to a resurgence towards the $1 mark.
Ripple’s CEO, Brad Garlinghouse, emphasizes the company’s commitment to bridging traditional finance with crypto, highlighting Ripple’s regulatory expertise and strong balance sheet. Meanwhile, Ripple’s Chief Legal Officer, Stuart Alderoty, challenges the SEC’s comments on crypto lawsuits, underscoring the ongoing legal battle between Ripple and the SEC.
On the substance, he cites one portion of the Ripple ruling but ignores that the SEC lost or gave up on most of its claims in the case, including the Court’s rejection of the SEC’s assertion that XRP was in and of itself a security.
— Stuart Alderoty (@s_alderoty) April 3, 2024
READ ALSO: Crypto Market Today: BTC Falls to $66K, ETH Trades at $3,320, SOL & XRP Drops
As Ripple navigates regulatory challenges and legal battles, the launch of its USD-backed stablecoin signifies a strategic move towards enhancing utility and liquidity on the XRP Ledger. Despite market fluctuations and regulatory uncertainty, XRP’s resilience and potential for growth remain intact, with investors closely monitoring its journey towards $1 amidst the legal battle with the SEC.
Oklo Adiga
My name is Oklo Adiga and I am a blogger that loves writing. I am ambitious and driven, I thrive on challenges and constantly set goals for myself. Always feel free to reach out to me if you have any questions or if you just want to connect.