XRP price bounced back after plunging to a crucial support level as the crypto market recovered and the Ripple USD (RLUSD) neared a key milestone. Ripple jumped to $2.2 on Wednesday, up by 15.7% from its lowest level this week.
RLUSD Stablecoin Nears Key Milestone
XRP price rose as Ripple USD, its stablecoin, continued to gain market share. CoinMarketCap data shows that its market capitalization has jumped to over $428 million, a notable figure for a stablecoin launched in December.
The ongoing trajectory suggests that it will reach the $500 milestone possibly by July this year. Artemis data shows that the adjusted RLUSD stablecoin volume rose by 57% in the last 30 days, while the number of addresses rose by 34%.
The success of the RLUSD stablecoin is a positive thing as it will help Ripple compete well with Circle’s USDC and Tether’s USDT. It will also make Ripple a crucial cash earner, especially in a high-interest rate environment.
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The challenge, however, is that only a small amount of RLUSD stablecoin is in the XRP Ledger. Over 84% of all RLUSD in circulation are in Ethereum’s network, with the remaining one being in the XRP Ledger.
The XRP Ledger has struggled to gain traction among developers as its total value locked (TVL) dropped by 4.7% in the last 30 days to $59 million. Its total stablecoin supply is just $71 million, lower than Unichain’s $350 million.
The XRP price rose as more data showed that the number of XRP transactions increased over the past few weeks. It had over 2 million transactions on Wednesday, a big increase from this month’s low of 1 million.
XRP Price Technical Analysis
The daily chart shows that the XRP price peaked at $3.40 in January and then began moving downward. This retreat occurred even after Ripple received some important positive news, including multiple ETF applications and the conclusion of the SEC vs. Ripple case.
XRP price is consolidating at the 50-day and 200-day Exponential Moving Averages (EMA). It is also hovering at the 38.2% Fibonacci Retracement level.
Most importantly, the coin dropped to the 50% Fibonacci Retracement level at $1.9137. This price is also along the lower side of the descending triangle pattern, a popular bearish sign.
Therefore, the most likely XRP price forecast is bearish as long as it remains below the descending trendline that connects the highest swings since January. A move below the lower side of the triangle will point to a drop to $1.6137, the lowest swing on April 7.
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