Ripple Labs, the company behind the well-known cryptocurrency XRP, has entered into a significant partnership with Guggenheim Partners. Despite this key development, XRP’s price remained relatively flat on Tuesday, trading at approximately $2.27, which was slightly lower than the week’s peak price of $2.32 and 33 percent lower than the highest recorded price this year.
The price of XRP remained slightly unaffected even with the advent of the new Digital Commercial Paper (DCP), a fixed-income asset supported by U.S. Treasuries and launched on the XRP Ledger. The DCP has already seen transactions worth over $280 million and is managed by Guggenheim Partners, a prestigious investment firm with assets under management totaling $349 billion.
A Modern Take on Commercial Paper
DCP harnesses the greater speed of transaction settlement and lower transaction costs on the XRP Ledger to revolutionize the way corporate paper is issued, transacted, and integrated with global treasury systems. Markus Infanger, senior vice president at RippleX, expressed optimism about this in his statement:
“We’re at a point where institutions no longer question if blockchain technology can support regulated financial products. They’re now interested in how they can leverage them on a larger scale. DCP perfectly exemplifies this shift and broadens the range of institutional financial products available on the XRPL.”
There is an expectation of growth for the XRP Ledger in the coming months, potentially benefiting XRP’s price due to the network’s practice of burning some transaction fees.
Accelerators for XRP Ledger’s Growth
One such growth accelerator for the XRP Ledger is Ripple’s recent acquisition of Hidden Road. Ripple Labs intends to migrate its daily transactions worth $10 billion to the XRP Ledger within the current year.
Another potential boost for the ledger comes from the Ripple USD (RLUSD) stablecoin, which within a few months of its launch, has already attracted over $388 million in assets.
Technical Analysis of XRP Price
XRP’s daily price chart reveals that the token peaked at $3.40 on January 16 and then pulled back to the current price of $2.2697. It remains committed to the descending trendline, linking the highest swing points since January 16. Furthermore, the XRP token has formed a descending triangle pattern, typically considered a bearish continution signal. This pattern emerges while the token is consolidating at the 50-day and 100-day Exponential Moving Averages. This suggests that unless XRP exceeds the descending trendline, the negative outlook could persist. The first support target is the lower limit of the triangle, followed by the neutral level at $1.
