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The price of XRP has been flat in April so far, up just over 1% in the past 24 hours at $0.60 alongside the Bitcoin price moving back above $70,000.
The XRP Price did spike 6% on April 4th, after Ripple Labs announced plans to launch its own stablecoin, recovering from the losses it experienced between April 1 and April 3.
In its announcement, Ripple said that its future stablecoin will be 100% backed by short-term US government treasuries, US dollar deposits, and similar cash equivalents. Furthermore, it will be pegged 1:1 to the USD.
Ripple also said that the assets will be audited by an independent third party. In the interest of transparency, Ripple also intends to publish monthly attestations. Its CEO, Brad Garlinghouse, said that launching a stablecoin is a natural step for Ripple, and it comes as part of its efforts to bridge the gap between crypto and traditional finance.
Soon after the announcement, the crypto market started to speculate about what the launch of the stablecoin might mean for Ripple’s XRP. Some suggested that this might spell XRP’s doom, while others have presented multiple reasons why this will not be the case.
These involve factors like XRP being neutral, while stablecoins remain tied to their issuers; the lack of counterparty risk, true transparency, de-dollarization, and more.
XRP Price Prediction
Following XRP’s announcement and price surge, many expected it to continue its recovery. However, the wider crypto market has seen a change of sentiment from bullish to bearish with the start of April. Even though XRP managed to surge and trade against the market as a consequence of the announcement, it was unable to resist the selling pressure for long.
The question is, will the situation turn around soon, and where is the XRP price going from here?
While the surge was caused by fundamental factors, it has since ended, and traders are now looking to technical indicators to make predictions and strategies. The Bollinger bands, for example, have narrowed compared to the situation after the price increase, and both are heading further down. Even so, they are managing to keep their distance from one another, which is encouraging.
TradingView: XRP price chart
On the other hand, XRP’s Relative Strength Index (RSI) value has been spiraling down ever since the surge reached its peak. This led it from the overbought zone to the oversold one. For the moment, it seems like the RSI value has stopped dropping around 35, although this could simply be a temporary drop, which would continue as the selling pressure continues to increase.
In terms of price, XRP has a strong support at $0.56, although it is not impossible for its price to break it. Meanwhile, even if it manages to start another recovery, a resistance level at $0.60 will be in its way, representing a strong barrier.
Best XRP Alternative – Emerging Cryptocurrency 5th Scape
The crypto market has recently seen several new cryptocurrencies emerging, each of which has great potential to attract users.
One example is 5th Scape (5SCAPE) – a rising crypto presale project that intends to act as the people’s gateway into AR & VR, which it views as the next big thing of the decade.
5th Scape believes in the power of virtual worlds, as they can remove the established boundaries, and offer limitless potential. It especially sees this technology’s potential in areas such as entertainment and education.
For example, in gaming, VR and AR can offer hyper-realistic game worlds that can provide a vast array of gaming experiences. That can include adrenaline-pumping battles, high-speed racing, immersive sports, precision archery, and more.
Right now, 5th Scape is holding its presale, offering its token 5SCAPE for a price of $0.00285 per token. The presale has reached Stage 4, and so far, it raised $3.91 million. However, Stage 4 will end in three days, which is when the price of 5SCAPE will go up by 14.74%, to $0.00327. The price will continue to grow with each new stage until it reaches its listing price of $0.01.
This price is 250% higher than what 5SCAPE costs right now, so purchasing it before that happens already guarantees gains at the time of launch. Should the demand continue to push the price further up, that only means greater profits for early investors.
Of course, there is no guarantee that the price will skyrocket post-launch, which is why everyone needs to do their own research and come to their own conclusion before engaging with emerging crypto projects.
*Cryptonomist did not write the article or test the platform.
