After ending the past three weeks on a bullish note, Ripple Labs-backed XRP is likely to end the first week of August on a bearish note. The large-cap altcoin, which has a fully diluted valuation of around $57.6 billion and an average daily trading volume of around $2 billion, has faced a formidable resistance level of around 64 cents over the past year.
It is worth noting that the 64 cents resistance level is full of nostalgia for XRP’s global community as it was the capitulation level after the U.S. Securities and Exchange Commission (SEC) accused Ripple of securities law violations in the fourth quarter of 2020.
A successful and sustained close above the resistance around 64 cents would push the XRP exchange rate close to its all-time high against the U.S. dollar. This bullish scenario will only come to fruition if the ongoing litigation ends in a favorable outcome for Ripple and the U.S. XRP market.
XRP shows medium-term bearish sentiment
The Fed’s decision to keep its benchmark interest rate at 5.50% has triggered a sustained correction in cryptocurrencies, with XRP prices falling more than 12% in the past three days. The next two months will be challenging for the altcoin, and the entire cryptocurrency industry market will be in turmoil.
In the coming weeks, XRP price will target the next liquidity range between 46 and 52 cents.
A growing ecosystem
The Ripple team has been working to build the XRPL network to compete with other first-layer blockchains in the industry. On Thursday, the Ripple team announced that the tokenization platform OpenEden Labs will bring tokenized U.S. Treasury bills (T-bills) to XRPL and has allocated $10 million.
Recently, Ripple announced that it is working with Fenasbac Next, Brazil’s largest accelerator program, to promote blockchain innovation in fund management, asset tokenization, payment, and lending on the XRP ledger.
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