Notable Dynamics in XRP’s Price Amid Industry Ecosystem News
XRP, a popular cryptocurrency, has encountered significant downward pressures on its price this week. This comes despite a variety of notable industry news, including the public listing of Bullish, a widely recognized cryptocurrency exchange backed by Peter Thiel. Despite the overall positive news in the crypto industry, the price of XRP has neared a bear market terrain.
XRP Price Fluctuations Following Bullish Announcement
Recent market analysis indicates a wavering price pattern for the XRP following Bullish’s announcement. In this public declaration, Bullish disclosed that it had utilized RLUSD, a stablecoin pegged to the US dollar and based on the XRP Ledger, to receive the proceeds of its initial public offer (IPO). The market cap for RLUSD has subsequently skyrocketed, amassing a total value worth over $666 million. What’s more, its monthly volume jumped significantly to $2 billion.
The changes the XRP token has been undergoing are also noteworthy. Its price plummeted, hitting a critical support point at $3, marking a depreciation of 17% from this year’s peak. Consequently, the market cap for XRP dropped to $179 billion, from its previous value close to $200 billion.
Bullish and Its Stablecoin Strategy for Its IPO Proceeds
In the world of decentralized finance, the use of stablecoins is increasingly growing in popularity and utility. Recognizing this trend, Bullish decided to adopt RLUSD and other stablecoins – such as PayPal’s PYUSD and World Liberty Financial’s USD1 – as the primary recipients of its $1.5 billion IPO proceeds.
Drawing attention to the role of stablecoins in the current decentralized finance industry, Bullish’s CFO, David Bonanno, shared his perspective. He advocates for the transformative potential of stablecoins and their widespread applications. He further argues that Bullish’s collaborations with these stablecoin issuers provide a testament to how the cryptocurrency exchange can leverage its robust infrastructure and liquidity to further other businesses’ growth.
RLUSD’s Rapid Growth in the Stablecoin Industry
Launched in December of the previous year, Ripple’s stablecoin, RLUSD, has been showcasing a rapid growth trend. Its supply and daily volume shot up to over $666 million and $171 million respectively, positioning it as one of the fastest-growing stablecoins in the industry.
Furthermore, analysts point out that even as the total count of transactions reduced by 14% to 416,000, Artemis data showed a 99% surge in RLUSD volume, rocketing to $2.6 billion in only 30 days. These appreciations can also be attributed to the recent implementation of the GENIUS Act, which provides regulatory guidance for the crypto industry in the US.
An increase in RLUSD’s utilization stimulates XRP price by creating additional uses for the XRP Ledger. Higher traffic further induces more XRP burning, resulting in reduced circulation.
Ripple’s Push for a Higher Presence in the Stablecoin Market
The last month has witnessed a 30% increase in the volume of stablecoins, with RLUSD taking a significant chunk of this increase. Ripple, meanwhile, has been upscaling its presence in the stablecoin market. As part of this strategy, it recently finalized the acquisition of Rail – a platform for global payments powered by stablecoins.
This move is touted as a key facilitator of its vision to provide the most comprehensive stablecoin payment solution in the market, further strengthening Ripple’s foothold in the industry.
XRP Price Technical Analysis and Future Predictions
Upon examination of the daily time frame chart, it becomes apparent that the XRP price has formed two unique chart patterns, which may lead to a potential bullish breakout in the future.
The first pattern it has formed is a cup-and-handle pattern, often seen as an indicator for possible gains, that includes a rounded bottom and a consolidation that constitutes the handle. Furthermore, a closer examination of this handle reveals it to be akin to an inverse head-and-shoulders pattern, which is commonly associated with expected gains over time.
With XRP price retaining its value above the 50-day and 100-day Exponential Moving Averages — indicative of consistent support — it is highly anticipated that the token might experience a robust bullish breakout. This could potentially direct it to a psychological level of $5.2. However, should the price drop beneath the head section at $2.7, it could invalidate this bullish outlook.
