XRP Price Swims In Red Sea Amid Ripple Futures Take Off

It’s a historical day for Ripple Network (XRP), as the popular remittance altcoin is debuting on the Chicago Mercantile Exchange (CME). Differently from regular Spot crypto trading, these CME XRP Futures are settled in cash, meaning that investors don’t really own XRP while trading.

XRP Welcomed With Giant Red Stick

Instead, stock traders on CME will be able to speculate on Ripple’s (XRP) price, getting potential profits from the ups & downs of XRP price movement. This opens the doors for institutional crypto players to hedge Ripple coin’s price positions with professional strategies without actually owning the underlying asset.

As the debut day trading went live for CME XRP, a giant red candle was printed. Namely, this happened because Ripple coin slumped over 3% in value over the past 24 hours, according to CoinGecko. Zooming out of the daily charts, it’s clear that XRP price inked 344% gains in a 365-day timeframe, being one of the most profitable major-cap altcoins.

Key Targets For XRP Price This Week

As we will see in the chart below, Ripple coin’s bounce back after shortly falling below the low-tier Bollinger Band (BOLL) is only starting to evolve. Currently trading at $2.31, XRP’s 5.5% 7-day backtrack evolved into a short squeeze on Ripple coin’s price charts.

Showing sense of a rebound, Ripple (XRP) price is still trading well below the lighthouse targets, such as the mid-tier Bollinger Band and the 200-day Exponential Moving Average (EMA), both depicted in blue. Moving past the hefty resistance point at $2.42 – $2.44, Ripple coin could strike for the red-label Bollinger Band at $2.45.

A successful daily closure above this territory could unleash strong buying power for both retail investors and institutional crypto enthusiasts. On the other hand, trading three cents below the 200-day EMA trend-line shows that the momentum is not there yet. The large money-tracking Chaikin Money Flow (CMF) metric was at 0.03, holding above zero since May 8.

On The Flipside

• Several instances in crypto’s history point to stock-regulated futures launching during bull cycle tops to take profits.
• CME launched Bitcoin Futures back in December 2017, bagging ATH of $19.7K before sliding down 33% in 3 days.

Why This Matters

Ripple coin’s integration into one of the globe’s largest traditional stock exchanges is set to solidify liquidity, open trading opportunities for traders, such as arbitrage and cash-settling.

Check out DailyCoin’s top crypto news:
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