Ripple token, XRP, went north of $1 for the first time since June 5.
Ripple forayed into blockchain gaming by partenering with Forte, a blockchain platform for games.
NEW DELHI (CoinChapter.com) — Ripple Labs native token, XRP, rallied above $1 for the first time in almost two months, as traders assessed its foray into blockchain gaming, part of a $300 billion gaming industry.
In detail, Forte, a blockchain platform for games, is a Ripple Xpring project that enables developers to create marketplaces and non-fungible tokens (NFT) atop the Ripple public ledger. Back in 2019, Ripple had partnered with Forte to provide $100 million to game developers working with blockchain.
Bids for XRP tokens surged after the announcement, rising 30% to reach $1.09. However, a downside correction ensued after owing to profit-taking sentiment. As a result, the XRP/USD rates crashed to as low as $0.93 on Thursday, also in line with the market-wide downside correction led by Bitcoin’s plunge below $45,000.
In addition, Flare network, a smart contract platform that operates through the Ripple ecosystem, announced its partnership with Global Esports Federation on August 6.
SEC vs Ripple
Gains also appeared because of Ripple’s potential lead in a lawsuit filed by the Securities and Exchange Commission (SEC). In detail, Judge Sarah Netburn ordered the US securities regulator to present internal documents that reportedly contained their views on Bitcoin and Ether, two of the XRP’s leading rival cryptocurrencies.
XRP backers noted that SEC intentionally misidentified XRP as securities while its previous commissioners treated Bitcoin and Ether, also blockchain-based digital assets, as utility tokens. Nonetheless, the SEC delayed the document filings, prompting experts to note that Judge Netburn might end up quashing the SEC’s lawsuit in favor of Ripple Labs over non-compliance.
“Judge Netburn told the plaintiff to turn over the documents twice already, but not a single document has been delivered. It should be noted that the Judge can order monetary sanctions or even dismiss the case altogether should the plaintiff remain uncooperative regarding the ordered discovery. A dismissal, however, is highly unlikely at this stage.”
$1 Conquered, What’s Next For XRP?
XRP moved above its 200-Day (Green) Moving Average trendline for the first time since June 21. While the Ripple token did breach above the trendline earlier, prices pulled back to close below the dynamic resistance.
Currently, the 200-Day MA is acting as immediate support for XRP at $0.815, with the Ripple token’s 20-Day (Yellow) Exponential MA line moving to form a confluence near the price level. The next support level is $0.735, which acted as support between May 19 and June 20.
An extended sell-off might pull prices down to $0.682, where the 50-Day (Violet) MA line forms support for XRP.
If XRP extends its rally, prices will try to move above resistance at $1.104. In the case of an extended run, bulls may next target $1.169 and $1.25 price levels.
The MACD is strongly bullish for XRP, as bars on the MACD histogram indicate. The histogram charts the difference between the MACD line (12-Day EMA and 26-Day EMA difference) and the MACD signal line, the 9-Day EMA of MACD. Asset momentum is bullish if the MACD line is above its signal line. Moreover, XRP’s MACD histogram bars are increasing, indicating the bullish rate is not declining yet.
However, the relative strength index for XRP is at 80.32, which brings the Ripple token into overbought territory. Ideally, a value above 70 indicates a trend reversal is in the works, but the RSI trendline is now moving horizontally, which is a good sign.
A Delhi based content writer, I did my bachelors in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.