Ripple tests network to support CBDC, see how XRP price reacts to it
The Ripple association is testing a ledger with the ability to issue central bank digital currencies, better known as CBDC, which could be a positive fundamental for the price of XRP.
The ledger will work with the same technology as the XRP ledger. So it will work for both bank-backed coin issuance and payments.
The purpose of the ongoing project is to provide a network that allows money to move at low operating costs and at the speed and volume needed by central banks, of course without neglecting security.
The Ripple association also seeks to ensure that the platform under development can interoperate with the existing financial infrastructure.
«The core technology behind this new CBDC Private Ledger has been running for over 8 years without incident, with billions of dollars of value traded every day.», Quote from the Ripple publication.
To all this, how has the price responded? Find out below.
Ripple price hampered by legal issues
While the largest cryptocurrencies in the ecosystem have been marking all-time highs, the price of XRP failed to follow this trend, due to the legal problems that the association behind this cryptocurrency has with the SEC.
Recently the Securities and Exchange Commission, better known by the acronym in English SEC, filed a lawsuit against Ripple Labs Inc, for the issuance of unregistered securities.
The legal battle is not yet over, which has undoubtedly caused a great wave of negativity among investors who were betting on the project.
Despite this, even XRP has not shown such negative signals when we analyze its price from the monthly chart.
I can even say that the attempt to resume the long-term trend is still going strong. This may be holding some hope for those who store the cryptocurrency.
With continued defenses from the support zone bordering $ 0.1644, it is still possible that XRP will see better gains in the medium term as it resumes its dominant strength. As long as that level is not lost, the holders of this crypto do not have much to worry about.
The resistance level that has been hampering Ripple’s price is the one located at $ 0.7644. If it is crossed the next target is at $ 0.96. Higher up, what remains is the area of the previous historical maximum, bordering $ 2.
XRP picks up demand near $ 0.4189
In the short term, Ripple’s price has been showing some signs of strength. It has tried not to lose supports in order to seek to challenge the immediate ceiling at $ 0.7644.
The price is still in a fairly large lateral range with resistance at the level mentioned in the previous paragraph and with support at $ 0.2398.
Because of this we may see volatile lashes that tell us little about the future, and although we may see some gains in the short term, as long as we do not see an effective escape above resistance there will not be much to be happy about.
All our publications are informative, so in no case should they be followed as investment advice.
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