TL;DR
- Ripple plans to launch a stablecoin, Ripple USD (RLUSD), in 2024 on the XRP Ledger and Ethereum, despite SEC’s criticism.
- Meanwhile, XRP’s price is down, but some analysts see the current level as a buying opportunity.
What’s New Around Ripple?
One of Ripple’s latest developments is its upcoming stablecoin pegged to the American dollar, which should serve as a bridge between traditional finance and the crypto industry.
Earlier this week, the company said it will be named Ripple USD (ticker RLUSD) and will be available on the XRP Ledger and Ethereum. The launch is scheduled for 2024, but the exact date remains unknown.
Despite not being live yet, the stablecoin has already received criticism from the United States Securities and Exchange Commission (SEC) which called it an “unregistered crypto asset.“
The agency and Ripple have been confronting for years. Those following the advancement of the crypto sector in the past few years must be aware of the lawsuit between the two entities centered on allegations that the firm conducted an unregistered securities offering by selling its XRP token.
The case recently entered its trial phase, with the SEC seeking a $2 billion fine on Ripple. The company did not welcome the idea, suggesting that its penalty should not exceed $10 million. One of its main arguments is that there are no direct allegations of fraud in the case.
Those willing to dive deeper and learn more about the legal spat between the entities, please check our dedicated video below:
XRP Price Outlook
The native token of Ripple is deep in the red on a weekly scale, currently trading at around $0.47. Still, analysts like the X user EGRAG CRYPTO remain unfazed, viewing the ongoing level as a buying opportunity.
The trader touched upon the Relative Strength Index (RSI), which reached low points over the past several days. As of the moment, the ratio stands at 42, while last week, it dropped below 25.
The XRP RSI measures the speed and change of price movements and could suggest the next potential move of the asset. A ratio above 70 signals the token might be overbought, meaning a correction could be imminent.
Prior to that, Matthew Dixon predicted that XRP’s valuation could head south in the event of surging inflation in the United States. However, the rate came lower than expected, and the token’s price spiked to almost $0.50. Shortly after, though, it dipped again after the US Federal Reserve decided to keep the interest rates unchanged.
