Ripple (XRP) price tests key ST resistance at $0.26 after logging a 7-week high

Ripple (XRP) price tests key ST resistance at $0.26 after logging a 7-week high
Written by:
Michael Harris
22nd October, 13:47
  • There’s room for a neutral, jurisdiction-less asset and that could potentially be Ripple, says CTO Schwartz
  • XRP/USD extended yesterday’s gains to trade at a 7-week high above the $0.26 handle
  • The bulls are working to secure a close above $0.26 and push the price towards $0.2750

Ripple (XRP) price has gained over 4% today to trade above the $0.26 handle for the first time since the first week of September. Ripple’s CTO believes that XRP’s could potentially become a neutral digital asset. 

Fundamental analysis: CTO discusses the future role of Ripple

David Schwartz, Chief Technology Officer of Ripple talked about the potential rise of a “global stablecoin” and the role of Ripple’s native coin XRP in that regard.

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The G-20 Financial Stability Board (FSB) has recently published a roadmap on the regulation of digital assets. In it, the board pointed to benefits that digital assets bring when it comes to facilitating payments. 

Referring to the possible emergence of a global stablecoin, Schwartz said: 

“I don’t think there’s going to be one world fiat any time soon, so even with stablecoins, there will be a lot of them. To make liquidity between CBDCs, other stablecoins, and new tokenized asset classes (securities, DeFi) there’s room for a neutral, jurisdiction-less asset.”

There has been a lot of talk in the crypto community about plans among central banks to launch their own digital currencies and a number of financial institutions around the world are intending to digitize and tokenize their currencies. 

In the discussion, one other crypto community member asked whether Schwartz referred to XRP or Stellar Lumen’s XLM when he talked about the “neutral and jurisdiction-less asset”. 

Schwartz said that there will not be only one asset and that Ripple will have to fight for its market share. 

“I think lots of digital and fiat assets will compete to play that role and there is room for more than one. I see the dollar’s role as the world’s settlement currency slowly shrinking and international commerce increasing. So we’ll be fighting for a share of a bigger market,” he said.

In that context, he said that he expects to see benefits for XRP as well as the US dollar. He also expects XRP Ledger and XRP Digital Asset to become a part of an ecosystem for greater liquidity in the world market.

Technical analysis: XRP makes gains

XRP/USD is trading over 4% today to log a 7-week high. The digital asset has been supported by yesterday’s strong close (+3.30%) as the buyers work to secure a daily close above the 200-DMA at $0.2544. 

Ripple daily chart (TradingView)

This would open the door for a push above the major horizontal resistance line that sits just above the $0.26 mark. In this case, a new XRP buying wave could be on the cards that could push the price movements to $0.2750, where the 200-WMA is located.

Summary

Ripple’s CTO said he doesn’t think there will be one global fiat currency but that XRP might have a key role in that context. In the meantime, XRP/USD extended yesterday’s gains to trade at a 7-week high above the $0.26 handle.

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