XRP Maintains Support Amid Euro Stablecoin Launch on Ledger

Key Moments

Macro Headwinds Weigh on XRP Price Action

Ripple’s XRP remained under pressure on Thursday, drifting toward the $1.40 psychological support level after failing to build momentum above heavy selling interest around $1.50 earlier in the week. That stalled breakout attempt highlighted ongoing risk aversion, reinforced by hawkish Federal Open Market Committee (FOMC) minutes released on Wednesday.

Broader market sentiment was also constrained by geopolitical tensions between the United States and Iran, adding another layer of caution for investors. XRP spot Exchange-Traded Funds mirrored this weaker tone, with reported outflows of $2.2 million on Wednesday.

Market participants are closely watching support at $1.40 as a potential pivot for XRP’s recovery prospects. A decisive break below this level could pave the way for a deeper pullback toward the October 10 low at $1.25.

SG-FORGE Brings EUR CoinVertible to XRP Ledger

Societe Generale-FORGE (SG-FORGE), the regulated digital-asset arm of French banking group Societe Generale, announced the integration of its euro-denominated stablecoin, EUR CoinVertible (EURCV), with the XRP Ledger (XRPL).

According to SG-FORGE, the decision to deploy EUR CoinVertible on XRPL is driven by the desire to support adoption and to capitalize on the ledger’s distinctive features, including scalability, low transaction costs, security, and decentralization. The rollout also leverages Ripple’s custody infrastructure and creates scope to investigate additional use cases, such as combining EUR CoinVertible with existing and future Ripple products.

EUR CoinVertible is already available on the Ethereum (ETH) and Ripple (XRP) blockchains. The extension to XRPL underscores SG-FORGE’s stated commitment to providing access to compliant crypto-assets.

Despite the strategic significance of the EUR CoinVertible integration, XRP continued to edge lower, indicating that the prevailing risk-off environment is still overshadowing positive ecosystem developments and limiting the potential for a durable price rebound.

Price Levels and Technical Structure

At the time of writing, XRP was changing hands around $1.41, with immediate support at $1.40 yet to be breached. From a trend perspective, the token remains under notable downside pressure, trading below the 50-day Exponential Moving Average at $1.70, the 100-day EMA at $1.91, and the 200-day EMA at $2.12. All three moving averages are sloping lower, reinforcing a bearish overarching bias.

A descending trend line drawn from the all-time high at $3.66 continues to cap recovery attempts, with resistance emerging near $2.09. A daily close above this trendline would be needed to open a path toward the clustered EMA region, beginning at $1.70.

Momentum Indicators: Mixed Signals

The Relative Strength Index (RSI) on the daily chart stands at 38, below the neutral midline, highlighting the subdued tone. A further drop toward oversold territory would likely dampen investor appetite and heighten the probability of a more protracted sell-off, with the October 10 low at $1.25 serving as the next provisional support area.

In contrast, the Moving Average Convergence Divergence (MACD) still presents a mildly constructive picture. The MACD line remains above the signal line, and the histogram is marginally positive, although the bars are contracting, pointing to fragile momentum. For bullish participants, defending the $1.40 floor is crucial to keeping a potential move toward Sunday’s high at $1.67 in play.

The Parabolic SAR indicator is positioned below the spot price, offering additional support around $1.25.

Crypto ETF Basics

An Exchange-Traded Fund (ETF) is an investment vehicle or index that follows the price of an underlying asset. ETFs can track a single asset or a basket of assets and sectors. For instance, a Bitcoin ETF is designed to mirror Bitcoin’s price performance. Investors use ETFs to gain exposure to specific assets without holding them directly.

Regarding Bitcoin futures ETFs in the United States, the first such product received approval from the U.S. Securities & Exchange Commission (SEC) in October 2021. Since then, a total of seven Bitcoin futures ETFs have been approved, while more than 20 additional applications are still awaiting regulatory clearance. The SEC has cited the nascent and potentially manipulable nature of the cryptocurrency sector as a reason for its cautious stance on crypto-related futures ETFs in recent years.

In the spot market, the SEC approved in January 2024 the listing and trading of multiple Bitcoin spot ETFs, enabling institutional and mainstream investors to participate in the leading cryptocurrency through regulated exchange-traded products. This move has been widely described within the industry as a transformative development.

Pros and Cons of Crypto ETFs

Crypto ETFs offer several advantages. They allow investors to gain exposure to digital assets without taking direct custody, which can reduce both operational risk and the costs associated with safekeeping. They also tend to have a lower learning curve and provide enhanced security, as the ETF issuer is responsible for managing and securing the underlying holdings.

On the downside, ETF investors do not own the underlying crypto-assets directly – encapsulated in the phrase, “not your keys, not your coins.” In addition, ETF structures typically involve management fees, which can increase the long-term cost of holding crypto exposure. Finally, while ETFs may mitigate some operational and custody risks, price volatility in the underlying cryptocurrency is still transmitted to the ETF, meaning investors remain exposed to market swings.