Welcome to HODL FM, the crypto newsletter that hits harder than your morning coffee after pulling an all-nighter trading memecoins.
Related: XRP Price Back at $0.5, Price Recovery Amidst Macro Financial Week
Here is a breakdown of what happened on Ripple (XRP) this week:
- Weekly price change for Ripple (XRP): XRP went up by 11% over the previous week from $0.513 to $0.5700.
- Ripple (XRP) Market Capitalization: The market cap for XRP rose from $28.86 billlion to $32.43 billion over the last one week.
- Ripple Project of the Week: Ripple is planning to launch a stablecoin on its network, the Ripple USD or RUSD, a token pegged to the US dollar on a 1:1 ratio.
On Monday, August 12, XRP decided to make a comeback, rising by 2.91% to close at $0.5689, shaking off the Sunday blues after a 5.34% tumble.
Meanwhile, the broader crypto market got its groove back, gaining 2.37% and boosting the total market cap to a healthy $2.062 trillion. It seems the market just needed a little Monday motivation!
Regulatory Clarity for Ripple USD
At the close of last week, Ripple kicked off testing its Ripple USD (RLUSD) stablecoin. The timing was no coincidence, landing just two days after the court delivered a final judgment in the SEC v Ripple case.
Testing, testing…RLUSD! We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet. RLUSD has not yet received regulatory approval and therefore is not available for purchase or trading – please be cautious of scammers who claim they…
— Ripple (@Ripple) August 9, 2024
However, there are still chances of Ripple and the SEC colliding course once more, as the former is pursuing regulatory approval for its RLUSD stablecoin—even though other stablecoins operate without SEC approval.
Ripple Vs the SEC Hurdles
In her final ruling, Judge Analisa Torres barred Ripple from any future violations of U.S. securities laws. However, she declined the SEC's bid to completely ban XRP sales to institutional investors.
Pro-crypto attorney Fred Rispoli commented on the injunction order, stating that the most important thing was that the order the SEC had wanted the judge to sign, the one they drafted and gave to the judge, was rejected by the court.
He added that the court went with a very generic order that essentially stated they were enjoined from violating section 5 of the securities laws going forward.
Which “doesn’t explicitly destroy their business model, which is what the SEC was going for in this.” continued Rispoli.
Short-term XRP/USD Technical Analysis
XRP decided to take a nosedive, breaking below the 20-day EMA ($0.57) on August 11, signaling that the bullish momentum is starting to fizzle out.
The 20-day EMA is flattening, and the RSI is hovering around the midpoint, hinting that the XRP/USDT pair might just stay stuck in its $0.41 to $0.64 comfort zone for a while longer.
There's a bit of support at the 50-day SMA ($0.53), but if that gives way, expect the pair to tumble down to $0.46.
On the flip side, if buyers manage to push the price back above the 20-day EMA, we could see a climb to $0.64. However, keep an eye on this level—it’s a key resistance. A break and close above $0.64 could pave the way for a rally up to $0.74.
Abimbola Adu
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