BitMEX is introducing a new perpetual swap contract for XRP. Meanwhile, the price of this cryptocurrency could be about to retrace based on multiple technical indicators.

In a recent tweet, one of the largest cryptocurrency derivatives exchanges in the world, BitMEX, announced that it is set to roll out a new XRP quanto swap. The contract will be paired against the U.S. dollar and it is scheduled to go live on Feb. 5 at 4:00 UTC.

Arthur Hayes, co-founder and CEO of BitMEX, revealed that the introduction of this new type of swap contract into the platform comes after the high levels of interest that investors have shown for XRP.

Hayes said:

“Is it called Ripple, XRP, or dogshit? Who knows, who cares. It’s worth more than zero so it’s time to trade the USD pair on BitMEX.”

The XRPUSD perpetual contract features a leverage of up to 50x and all margin will be posted in Bitcoin, according to BitMEX. Traders will be able to long or short this contract only using Bitcoin as a collateral.

Despite the significance of the announcement, the recent bullish impulse that XRP experienced appears to be reaching an exhaustion point suggesting that a correction could be underway.

After reaching a low of $0.176 on Dec. 18, 2019, XRP entered a bull rally that has seen its price surge by nearly 50 percent. This cryptocurrency recently hit a high of $0.263 and now it seems to be bound for a correction.

In fact, the TD sequential indicator is currently presenting a sell signal in the form of a green nine candlestick on XRP’s 1-day chart. This technical index estimates a one to four candlestick correction or the beginning of a new downward countdown. A red two candlestick trading before a preceding red one candle could serve as validation of the bearish formation.

A spike in the selling pressure behind XRP around the current price levels could push it down to the 78.6 percent Fibonacci retracement level. Breaking below this significant level of support could trigger a steeper correction. The next levels of support sit around the 61.8 or 50 percent Fibonacci retracement level.

Nevertheless, an increase in demand for XRP that allows it to close above the recent high of $0.236 could invalidate the sell signal presented by the TD sequential indicator. Moving above this resistance level could set the stage for a further advance to $0.30.

Time will tell whether the launch of BitMEX’s XRPUSD swap contracts could benefit or hurt the price of this cryptocurrency.

The post BitMEX introduces a new perpetual swap for XRP; here’s why this is important appeared first on CryptoSlate.

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