XRP seems to have gotten into a bearish channel today, as it has fallen near the $2.08 level. This fall marks a nearly 1.64% daily decrease in the value of XRP. However, today, we have some positive XRP news, which can be a force that leads to a reversal. This is because one of the biggest crypto exchanges has now added XRP futures contracts to its platform. Additionally, we have a short-term XRP price prediction, which reveals the price target in the event of such a reversal.
Nano vs Full XRP futures – What’s the Difference?
Recently, Coinbase Institutional announced that it is going forward with adding XRP futures to the platform. This feature is now CFTC-certified and has been available on Coinbase Derivatives LLC. This development comes as an update to the previous request filed by Coinbase to the US Commodity Futures Trading Commission. Based on this filing, Coinbase asked for the approval of the CFTC to self-certify the XRP futures products. As such, it seems that Coinbase’s request has been approved; additionally, Coinbase commented on the launch. “Coinbase Derivatives LLC now offers CFTC-regulated futures for XRP.”
Based on the available information, these new futures come in two different kinds of contracts with different focuses. First, there is the institution-focused product, which is a 10,000 XRP contract. Additionally, there is a retail investor-friendly version called nano, which is a 500 XRP contract. This contract comes at nearly $1,000 each with the current value of each XRP token. Both of these contracts are traded in the US dollar. As such, these futures have increased accessibility for both institutional and retail investors and also present useful and essential risk management features.
Is the Ripple SEC Deal Bullish for XRP?
Additionally, we have other important fundamental developments, such as the recent joint appeal dismissal by both Ripple and the SEC. The court of appeals has put a pause on this lawsuit, giving time for the SEC and Ripple to reach an agreement. The agreement includes a decrease in the fine amount from $125M to $50M. Additionally, another condition is for the ban on XRP institutional sales to be lifted. There is also the recent launch of Teucrium’s 2x leveraged XRP ETF. Both of these recent developments can bring on more investors and lead to a bullish price movement.
Is XRP Gearing Up for a Breakout Above $2.20?
Based on the current XRP price action, this coin is continuing the consolidation trend. Additionally, the RSI affirms this as it shows a 47, which puts it in the neutral zone. Additionally, the ADX indicator is also within this view, as it shows a lack of trend strength by sitting at 17. There is also a strong support taking shape at $2.00 and a resistance near the $2.20 price level.
As seen in the XRP/USD daily chart, the RSI moving average’s movement has become more stable, signaling an incoming change in trend. As such, in case of a breakout from the $2.20 resistance, the XRP price prediction could reach $2.35. To move further up, the RSI needs to go above 60, and the ADX should be near the 25 point. If such conditions are met, we could see an XRP price surge to $2.50.
What’s Next for XRP After the Hidden Road Deal?
Additionally, in other positive XRP news, we recently heard about Ripple’s acquisition of the Hidden Road brokerage firm. This purchase is said to help expand the XRP ecosystem and increase the adoption of this token. As such, with fundamentals building up bullish momentum, we can expect an XRP price surge soon.
Source: Coinfomania / Digpu NewsTex