- XRP’s downtrend may be weakening, but technicals suggest further downside is possible.
- Meld Gold’s planned launch of gold and silver stablecoins on the XRP Ledger could boost XRP.
- Ripple is exploring tokenization opportunities on XRPL, potentially integrating precious metals.
A significant development on the XRP Ledger could potentially change the narrative for XRP investors. Australian firm Meld Gold is set to launch two new stablecoins , bringing fungible gold and silver assets to the XRP ledger in Q3 2024.
Ripple’s president announced that the firm is actively exploring various opportunities for tokenization on XRPL. This integration of precious metals with Blockchain technology could provide a bullish catalyst for XRP, even as technical indicators suggest a weakening bearish trend.
XRP has declined for the past week, but there are signs that the downtrend may be losing momentum. The chart below shows a one-week candlestick chart for XRP with a Heikin Ashi overlay. Heikin Ashi candlesticks reduce choppiness and market volatility, making trends easier to see.
Source: Brett Hill
XRP’s recent downtrend is indicated by the series of lower lows and lower highs on the chart. The price is currently testing the support level of around $0.50. If the price breaks below this level, it could signal a further bearish trend for XRP. However, if the price can hold above this level, it could indicate that the downtrend has reached its limit or that the token is poised for a trend reversal.
However, trading volume is relatively low, which suggests a lack of conviction behind the recent price movement. This could mean that the breakout, either above or below the support level, may be weak.
Additionally, the Heikin Ashi candlesticks are showing some bearish signs. This is indicated by the small bodies and long upper shadows, suggesting that sellers are in control and are pushing the price down.
Overall, the chart suggests that XRP is at a critical juncture. If the price breaks below the $0.50 support level, it could signal further downside for XRP. However, if the price can hold above this level, it could be a sign that the downtrend is ending.
While the technical indicators present a mixed picture, fundamental developments may offer a different perspective for XRP investors. The 50-day and 200-day moving averages are both sloping down. With the Relative Strength Index (RSI) below 50, XRP is not in oversold conditions, leaving room for further downside.
Overall, the technical analysis suggests that XRP is in a bearish downtrend. However, there are indications that the downtrend may be losing momentum.
Meanwhile, Australian firm Meld Gold is set to launch two new stablecoins, bringing fungible gold and silver assets to the XRP ledger in Q3 2024. Ripple’s president announced that the firm is actively exploring various opportunities for tokenization on XRPL. This development marks a significant step in the integration of precious metals with blockchain technology.
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