Coinbase Expands XRP Futures Contracts Trading

Coinbase Global Inc. (NASDAQ: COIN), a top-tier cryptocurrency exchange in the North American markets, announced a major trading expansion for Ripple Labs' XRP on Monday, April 21.

Coinbase (NASDAQ:COIN) is expanding its trading capabilities with the addition of Ripple Labs’ XRP futures contracts. The exchange, a key player in the North American cryptocurrency market, confirmed the listing of these new products.

Earlier this year, on April 3, Coinbase filed with the Commodity Futures Trading Commission (CFTC) to introduce its plans for offering XRP futures contracts.

Now, Coinbase is launching monthly, cash-settled margin contracts, each covering 10k XRP, for its clients. These futures contracts will be available in the standard sizes and on the chosen futures trading platform used by Coinbase.

This launch follows the recent introduction of a similar product by Bitnomial in mid-March.

Why Is The Launch Of XRP Futures Contracts Important?

The launch of Coinbase’s XRP futures contract will further increase the cryptocurrency’s presence among institutional investors. Notably, XRP has obtained significant regulatory clarity in the U.S. in recent months, thanks in part to the Donald Trump administration’s initiatives to advance the adoption of cryptocurrencies.

As more institutional investors engage in futures contract trading, it's anticipated that the liquidity of XRP will rise accordingly.

What's Next For XRP Price

The narrative of greater institutional investor participation impacting cryptocurrencies like XRP will likely play out over the long term. In the intervening period, digital assets are poised to assume a critical role in the process of resetting global financial systems, which have become increasingly compartmentalized over the past few decades.

From a technical analysis perspective, XRP price has been forming a potential bullish pattern, especially after breaking out of a falling logarithmic trend. In the daily time frame, XRP price is likely to retest the recent bullish breakout by falling back towards the support level above $1.77.

Furthermore, the daily MACD indicator has yet to indicate a bullish signal, and the Relative Strength Index (RSI) encountered a resistance level at approximately the 50% threshold.

However, a sustained close above $2.22 will serve to cancel out any further short-term correction and ultimately set the stage for a fresh rally that could propel XRP towards a new all-time high.