The largest cryptocurrency derivatives exchange, BitMEX, is launching a new perpetual swap contract pair to its platform. Starting tomorrow, users will be able to trade Ripple (XRP) token against the USD, with leverage.
XRP/USD Perpetual Swap Now On BitMEX
The most popular Bitcoin margin trading exchange confirmed the news regarding XRP’s addition. The company will be adding a new perpetual swap on the XRP token (XRP/USD). Trading will begin at 4 AM UTC on February 5th, 2020.
A perpetual swap contract works as a futures contract without a specified date in the future when the contract has to be settled. Generally, users have to pay funding fees when they trade such contracts, which is the case with XRP/USD on BitMEX Exchange, as well.
The official announcement is coming a month after the company had initiated trading for XRP perpetual contracts on BitMEX Testnet.
From a technical standpoint, the website explains that the XRP/USD perpetual contract will be priced on the BXRP Index, which tracks Ripple’s price every minute.
Interestingly enough, BitMEX CEO Arthur Hayes didn’t appear too excited about the news:
“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. Boo-Yaka-sha!” – he noted on his personal Twitter account.
BitMEX CEO Arthur Hayes. Photo by: Arthur Hayes
XRP Price Action To Come?
Historically, similar news has affected the price of the asset, and Ripple itself is a prime example. Earlier this year, Binance Futures introduced XRP/USDT perpetual contract, and its price surged 10% during that day.
However, when BitMEX added ETH/USD perpetual swaps on August 2nd, 2018, Ethereum immediately deviated from Bitcoin, plunging against its value.
Ethereum/Bitcoin Price Reaction On BitMEX After ETH/USD Swap. Chart by TradingView. Source
Of course, adding a new perpetual swap contract doesn’t necessarily mean that it’s the sole reason for such a serious deviation. However, having a leveraged trading pair on a leading exchange might deliver a short term price effect on both sides.
In any case, it would be compelling to follow if there will be any distinct effect on Ripple’s price when XRP/USD perpetual swap goes online tomorrow on BitMEX’s platform. Looking at the technicals for XRP, the first resistance is at $0.26, followed by $0.274. If the price is to reverse downwards, $0.245, and $0.234 serve as significant support levels.
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