Anhroi

The post Ripple’s XRP To Become Global Currency Says German VC Firm CEO appeared first on Coinpedia Fintech News

In a recent interview on the floor of the Frankfurt Stock Exchange, Oliver Michel, the CEO of Tokentus Investment AG, a prominent German Web3 venture capital firm, expressed that XRP is perfectly positioned to serve as a world reserve currency. 

Its ability to provide liquidity for foreign exchange reserves, international transactions, investments, and global economic applications makes it well-positioned for this role.

35 – This theory briefly touches on #XRP becoming a World Reserve Currency and that it because it can be assumed that once ALL banks in the world depend on an asset for global transactions, then it becomes a “reserve asset”.There is no official world declaration needed.

— Chad Steingraber (@ChadSteingraber) December 30, 2023

XRP Solving Cross-Border Hassles

In a recent interview with Der Aktionar, Michel presented a compelling scenario, illustrating the challenges associated with traditional cross-border transactions, especially from Germany to the United States. 

He explained the complications involved in converting euros to dollars through multiple banks, which takes a lot of time and money. However, to solve this, Michel highlighted that Ripple strategically developed a business concept around XRP to address these inefficiencies.

In one particular scenario, Michel described how the sender’s bank could convert euros into XRP at a low cost. Later the recipient’s bank would then quickly turn the XRP into dollars, making the whole process faster and cheaper.

XRP’s As a Global Currency

Delving further into the interview, Michel shared his perspective on the future role of XRP Ledger (XRPL) and Ripple’s On-Demand Liquidity (ODL), particularly in the context of the rising trend of central bank digital currencies (CBDCs). Michel also noted that central banks need to adopt digital currencies quickly.

Michel highlighted Ripple’s bridge technology as a crucial enabler for establishing connections between central banks. While there are other digital coins like JP Morgan’s, Michel believes being the first to offer such technology gives Ripple an advantage.

Michel expressed confidence that, given sufficient time and favorable developments from Ripple, XRP has the potential to emerge as the world reserve bridge currency.

Solana (SOL) looks poised to undergo a bull run in the current crypto market boom led by Bitcoin (BTC), argues independent market analyst Hansolar.

SOL price could reach $600

At the core of Hansolar’s bullish analogy for Solana is its potential to replicate Ether’s (ETH) price trends during the previous crypto market bull runs. For instance, in the 2020-2021 bullish cycle, ETH’s price surged from around $85 to as much as $4,935, tailing Bitcoin’s uptrend.

Interestingly, ETH’s uptrend increased by approximately 1,400% after Bitcoin established a new record high above $20,000, as shown in the three-day chart below.

BTC/USD vs. ETH/USD three-day price performance chart. Source. TradingView

This fractal could repeat in 2024 as Bitcoin pursues an extended bull run above its November 2021 record high of $69,000. Nonetheless, as Hansolar argues, Bitcoin refreshing its all-time high could benefit Solana equally this time.

"Previously, ETH took off when BTC actually broke out into ATHs. It's then when retail buys into SOL as the high beta catch up play," he stated, adding:

"Currently SOL is at around 50% from ATHs similarly to how ETH was around the 50% mark as BTC was nearing ATHs in the previous cycle."

BTC/USD vs. ETH/USD and SOL/USD three-day price performance chart. Source: TradingView

That said, Bitcoin's run-up toward $150,000, a valuation predicted by Fundstrat's Head of Research Tom Lee on ETF approval prospects, could have Solana target $600 as its long-term upside target. That is nearly 450% above the current SOL price.

Do Solana fundamentals support bullish SOL predictions?

Fundamentally, Solana has fared well in terms of network adoption recently, with the total-value-locked (TVL) across its ecosystem at 20.51 million SOL, its highest level since January 2023.

Solana TVL performance chart. Source: Defi Llama

Theoretically, as more assets are locked into DeFi platforms, the circulating supply of these tokens may decrease, leading to a potential increase in demand relative to supply. This scarcity effect can contribute to price appreciation of the locked tokens.

Read more: Why Solana will prevail despite Ethereum ETFs

Solana’s rising TVL appears synchronous to its sustained quarter-over-quarter (QoQ) growth tracked by the data resource platform Messari.

Notably, the network’s average daily fee payers during Q4/2023 surged 103%. In the same period, its average daily DEX (Decentralized Exchange) volume rose by 961%, with a 359% increase in average daily NFT (nonfungible token) volume.

Solana network usage overview by the end of 2023. Source: Messari

In Q1/2024, the airdrop of Jupiter DEX’s native token, JUP, also spurred on-chain activity atop the Solana blockchain. Also, its NFT volumes peaked near $5 billion, underscoring a strong underlying demand for SOL tokens.

Solana technical analysis

In the near-term, Solana eyes $200 as its primary upside target due to the formation of a bullish continuation pattern on its daily chart.

Dubbed bull pennant, the pattern develops when the price consolidates inside a symmetrical triangle structure after a strong move upward. Meanwhile, it resolves after the price breaks above the upper trendline and rises by as much as the height of the previous uptrend.

As of Feb. 28, SOL’s price was testing the pennant’s upper trendline for a potential breakout. If that happens, the price could rise toward $200 during March, up approximately 75% from the current price levels.

SOL/USD daily price chart. Source: TradingView

Conversely, a breakdown below the pennant’s lower trendline risks invalidating the bullish setup altogether. Should it happen, SOL’s price can drop by as much as the previous upside move, i.e., toward $60.75, down circa 45% from current price levels.

Bitcoin (BTC) soared to a two-year high near $55,000 on Feb. 26, buoyed by the continued demand from the spot Bitcoin exchange-traded funds. CoinShares data shows that institutional investors pumped $570 million into Bitcoin investment products over the past seven days.

Bitcoin ETFs have seen inflows of more than $5 billion in net assets under management (AUM) since their launch, while gold ETFs have seen outflows of $3.6 billion during the same period, according to a Feb. 26 research report shared on X by senior Bloomberg analyst Eric Balchunas and associate analyst Andre Yapp. The analysts expect Bitcoin ETFs AUM to overtake that of gold ETFs in the next two years.

Daily cryptocurrency market performance. Source: Coin360

Bitcoin’s strength is likely to uplift the mood in the crypto space, benefitting select altcoins. However, as Bitcoin approaches its all-time high, the risk of a pullback can not be ruled out as the bears try to make one last-ditch attempt to stop the rally. 

Could the Bitcoin bulls maintain the breakout, or will higher levels tempt short-term traders to book profits? Let’s analyze the charts to find out.

S&P 500 Index price analysis

The S&P 500 Index skyrocketed above the 5,048 resistance on Feb. 22, indicating the resumption of the uptrend.

SPX daily chart. Source: TradingView

Although the upsloping moving averages indicate an advantage to buyers, the negative divergence on the relative strength index (RSI) suggests that the uptrend may be losing steam.

The 20-day exponential moving average (4,983) remains the crucial level to watch out for on the downside. If this support cracks, the index may descend to the 50-day simple moving average (4,857).

Instead, if the index continues higher, it will invalidate the negative divergence. The failure of a negative pattern generally results in a sharp up move. The index could then rise to 5,200.

U.S. Dollar Index price analysis

The bears yanked the U.S.Dollar Index (DXY) below the 20-day EMA (103) on Feb. 22, but the long tail on the candlestick shows aggressive buying at the neckline of the inverse head-and-shoulders pattern.

DXY daily chart. Source: TradingView

The flattish 20-day EMA and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. If the price rises and sustains above the 20-day EMA, the bulls will try to drive the index above 105. If they do that, the rally could reach 107.

On the other hand, if the price continues lower from the current level, it will suggest that the bears are trying to make a comeback. The index could then slide to the 50-day SMA (103). A bounce off this level could keep the index inside a range for some time.

Bitcoin price analysis

Bitcoin broke above the $53,000 overhead resistance on Feb. 26 after consolidating in a tight range for the past several days. This suggests that bulls remain in control.

BTC/USDT daily chart. Source: TradingView

If buyers sustain the price above $53,000, the BTC/USDT pair is likely to pick up momentum and soar toward $60,000 where the bears are again expected to mount a strong defense.

There are several layers of support on the downside. If $50,500 breaks down, the bulls will try to arrest the decline at the 20-day EMA ($50,075) and then the breakout level of $48,970. The bears will have to tug the price below $48,970 to indicate the start of a deeper correction to the 50-day SMA ($45,734).

Ether price analysis

Ether (ETH) surged above the $3,036 resistance on Feb. 25, signaling the start of the next leg of the uptrend.

ETH/USDT daily chart. Source: TradingView

The upsloping moving averages indicate that bulls are in command, but the overbought zone on the RSI suggests a minor correction or consolidation is possible. If buyers do not allow the price to sustain below $3,000, the likelihood of a rally to $3,300 and then to $3,540 increases.

The first sign of weakness will be a break and close below the 20-day EMA ($2,823). That will indicate aggressive profit booking by the traders. The ETH/USDT pair could then plunge to $2,717 and subsequently to the 50-day SMA ($2,546).

BNB price analysis

BNB (BNB) is trying to resume its uptrend, but the overbought level on the RSI suggests that the bears may pose a strong challenge near the overhead resistance at $400.

BNB/USDT daily chart. Source: TradingView

If the price turns down from the current level but rebounds off the 20-day EMA ($356), it will suggest that the sentiment remains bullish. That will enhance the prospects of a break above $400. The BNB/USDT pair may then rally to $460.

Contrarily, if the price continues lower and breaks below the 20-day EMA, it will suggest that the bulls are aggressively booking profits. That could sink the pair to the 50-day SMA ($323). A break below this level will tilt the advantage in favor of the bears.

XRP price analysis

XRP (XRP) has been trading near the moving averages for the past few days, indicating uncertainty about the next directional move.

XRP/USDT daily chart. Source: TradingView

The flattish moving averages and the RSI just below the midpoint suggest a possible range-bound action in the near term. The boundaries of the range could be $0.48 on the downside and $0.58 on the upside.

Buyers will have to drive and maintain the price above $0.58 to indicate that the correction may be over. The XRP/USDT pair could then attempt a rally to $0.67 and eventually to $0.74. The support on the downside is at $0.48 and then $0.46.

Solana price analysis

Solana (SOL) is finding support at the 50-day SMA ($100), indicating that the bulls are trying to arrest the decline.

SOL/USDT daily chart. Source: TradingView

The flattish moving averages and the RSI near the midpoint suggest a range-bound action in the near term. Buyers will have to push and maintain the price above the downtrend line to start a rally to the overhead resistance zone between $119 and $127. If this zone is surmounted, the up move may reach $135.

On the contrary, if the price turns down from the current level or the downtrend line and breaks below the 50-day SMA, it will suggest that the bears are selling on rallies. The SOL/USDT pair could then plummet to $80.

Cardano price analysis

The bulls managed to protect the 20-day EMA ($0.58) in Cardano (ADA), indicating that the sentiment remains positive.

ADA/USDT daily chart. Source: TradingView

The gradually rising 20-day EMA and the RSI in the positive territory show that the bulls have a slight edge. Buyers will try to kick the price to the overhead resistance zone between $0.64 and $0.68.

Contrary to this assumption, if the ADA/USDT pair turns down sharply and breaks below the 20-day EMA, it will indicate that the bulls have given up. That could start a correction to the 50-day SMA ($0.54).

Avalanche price analysis

Avalanche (AVAX) bounced off the 50-day SMA ($36.12) on Feb. 24, indicating that lower levels are attracting buyers.

AVAX/USDT daily chart. Source: TradingView

The flattish moving averages and the RSI near the midpoint do not give a clear advantage either to the buyers or the sellers. If the price turns down and breaks below the 50-day SMA, the AVAX/USDT pair could descend to $32.

Alternatively, a break and close above the 20-day EMA ($37.84) could open the doors for a possible rally to the overhead resistance of $42. The bulls will have to overcome this barrier to signal the completion of an inverse H&S pattern.

Dogecoin price analysis

The bulls successfully defended the breakout level from the triangle but failed to propel Dogecoin (DOGE) above the $0.09 overhead resistance.

DOGE/USDT daily chart. Source: TradingView

This indicates a lack of demand at higher levels. The bears will try to gain the upper hand by pulling the price below the moving averages.

If they succeed, the DOGE/USDT pair could drop to the uptrend line. This is an important level for the bulls to defend because if they fail in their endeavor, the pair could start a downward move to $0.07.

The bulls will have to drive and maintain the price above $0.09 to indicate the start of a new up move. The pair could surge to the $0.10 to $0.11 resistance zone, where the bears are likely to mount a strong defense.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.