XRP surged nearly 16 percent on Jan. 6 as Binance launched perpetual swaps. Despite the upswing, this cryptocurrency lost a significant portion of the gains it made. Now, several technical indicators estimate a steeper correction.
XRP derivatives on Binance
On Jan. 6, the world’s largest cryptocurrency exchange by trading volume Binance announced the introduction of XRP perpetual contracts. The contracts are paired against Tether (USDT) and users can trade it with up to 75x leverage.
Although futures contracts pose an extreme level of risk, they have the potential to generate a massive amount of profits for traders. According to Changpeng Zhao, Binance’s CEO, the high leverage on these contracts offer professional traders an efficient way to trade very quickly, both in terms of cost and performance.
Following the announcement, XRP skyrocketed nearly 16 percent. Meanwhile, Brad Garlinghouse, the CEO of Ripple, addressed the crypto community and investors about a number of concerns that have been raised about XRP over the last year.
Ripple “can’t control XRP price”
In an interview with CNN, Garlinghouse said that Ripple is interested in the success of XRP dismissing the…
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Author: Ali Martinez