Ripple (XRP) price tests the key ST resistance at $ 0.26 after hitting a 7-week high

Ripple’s (XRP) price gained over 4% today, breaking above the $ 0.26 level for the first time since the first week of September. Ripple’s CTO believes XRPs could potentially become a neutral digital asset.

Fundamental Analysis: CTO discusses Ripple’s future role

David Schwartz, Ripple’s Chief Technology Officer spoken on the potential rise of a “global stablecoin” and the role of Ripple’s native XRP coin in that regard.

The G-20 Financial Stability Board (FSB) recently published a roadmap on digital asset regulation. In it, the board highlighted the benefits digital assets bring when it comes to facilitating payments.

Referring to the possible emergence of a global stablecoin, Schwartz said:

“I don’t think there will be a worldwide fiat anytime soon, so even with stablecoins, there will be plenty. To create liquidity between CBDCs, other stablecoins and new tokenized asset classes (stocks, DeFi) there is room for a asset neutral and without jurisdiction “.

There has been a lot of talk in the crypto community about plans between central banks to launch their own digital currencies, and a number of financial institutions around the world have plans to digitize and tokenize their currencies.

In the discussion, another member of the crypto community asked if Schwartz was referring to Stellar Lumen’s XRP or XLM when speaking of the “neutral and jurisdictionless resource.”

Schwartz said there won’t be a single asset and that Ripple will have to fight for its market share.

“I think a lot of digital and fiat assets will compete to play that role and there is room for more than one. I see the dollar’s role as the world’s settlement currency in slow contraction and international trade on the rise. So we will fight for a bigger market share, “he said.

In that context, he said he expects to see benefits for XRP and the US dollar. It also expects XRP Ledger and XRP Digital Asset to become part of an ecosystem for greater liquidity in the global market.

Technical analysis: XRP makes money

XRP / USD is trading over 4% today to record a maximum of 7 weeks. The digital asset was supported by yesterday’s strong close (+ 3.30%) as buyers work to secure a daily close above the 200-DMA at $ 0.2544.

This would open the door for a push above the main horizontal resistance line which sits just above the $ 0.26 mark. In this case, there could be a new wave of XRP buying that could push the price moves to $ 0.2750, where the 200-WMA is.

Summary

Ripple’s CTO said he doesn’t think there will be a global fiat currency, but that XRP could play a key role in that context. Meanwhile, XRP / USD extended yesterday’s gains to trade at a high of 7 weeks above the $ 0.26 handle.