Ripple Under Threat As ECB Contemplates CBDC

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With a central bank-issued euro becoming a medium-term possibility, analysts have said Ripple (XRP) could be dramatically affected.

Olli Rehn, a policymaker at the European Central Bank (ECB), explained in a speech today that the ongoing feasibility study for a digital euro will be concluded in October 2023. Rehn added that following this investigation phase, his organization will then decide whether to forge ahead with the creation of a digital euro or not.

Central bank digital currencies (CBDCs) like the digital euro will serve as a digital alternative for payment settlements. Analysts expect the ECB to push for large-scale adoption of this token if it ever becomes a reality. That said, a digital euro will be in direct competition with cryptocurrencies like XRP, which is used for institution-grade cross-border payment settlements by Ripple.

A digital euro campaign by the ECB will undoubtedly cost Ripple numerous vendors and partners and impinge on its growth and expansion plans. A decline in the growth prospects of Ripple will hurt the price of its native token, XRP.

Meanwhile, analysts also claim that Eurozone authorities are likely to announce a total ban on dollar-pegged Stablecoins, including Tether (USDT) and USD Coin (USDC). Analysts have warned that a ban on Stablecoins in Europe will have a far-reaching negative effect on the general crypto industry.

Key Ripple Levels to Watch — August 24

Ripple remains incapable of reclaiming the $0.3500 mark as the broader crypto market continues to struggle with a bearish sentiment. The cross-border payment cryptocurrency needs to return above my ascending trendline before the prevailing bearish sentiment can be lifted.

XRPUSD – Daily Chart on Bitfiinex. Source: TradingView.

At this point, everyone is looking to the upcoming Ethereum Merge to usher in some sustained bullish price movements, thereby flipping the market sentiment. However, the question on some lips is: “will the event boost market sentiment,” or has a rally already been priced-in?

Meanwhile, my resistance levels are $0.3500, $0.3600, and $0.3700, and my support levels are $0.3400, $0.3200, and $0.3000.

Total Market Capitalization: $1.04 trillion

Ripple Market Capitalization: $17.1 billion

Ripple Dominance: 1.64%

Market Rank: #7

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.