Ripple (XRP), the blockchain-oriented payment platform, has initiated the on-chain minting of Ripple USD (RLUSD). Although this process started in September, Ripple recently witnessed a significant surge in the quantity of stablecoins minted over the past 24 hours, coinciding with a drop in XRP’s price.
This advancement could be positive for the blockchain ecosystem, but the recent decline in XRP’s price may concern its investors. However, some analyses suggest that this situation may change in the near future.
Ripple Takes Action
RLUSD is a stablecoin pegged to the US dollar and exclusively developed by Ripple. Even though it remains in the testing stage, Ripple has announced that the asset will be available solely for institutional users upon its official launch. According to the Ripple stablecoin tracker, the project has minted 2.45 million RLUSD in the last 24 hours.
While this development might not yield immediate benefits for XRP’s retail holders, investors with substantial XRP holdings could benefit, reflecting an increasing demand for liquidity in the market.
Five days prior, the altcoin was valued at $0.66, reaching a six-month peak. Currently, however, the token’s price has dropped to $0.59. Despite this, it appears that many investors are taking advantage of the discount by purchasing the dip.
Read more: How To Buy XRP and Everything You Need To Know
The daily chart indicates that XRP’s Bull Bear Power (BBP) is in the positive range. The BBP compares the peak and trough prices of an asset to its Exponential Moving Average (EMA). This technical indicator reflects the strength between buyers and sellers.
When the BBP is negative, it suggests that sellers (bears) have the upper hand. Conversely, the current positive reading indicates that buyers (bulls) are actively purchasing the token. This development also aligns with a significant XRP ETF application.
XRP Price Forecast: Bullish Reversal Ahead
Even though XRP’s price has recently fallen, the daily chart reveals the emergence of an inverse head-and-shoulder pattern. This formation signifies a shift from bearish to bullish, characterized by three successive lows, signaling the conclusion of a downtrend.
The right shoulder, depicted below, implies that sellers might be nearing exhaustion. For this assertion to hold, XRP’s price needs to break the neckline at $0.60. If bulls manage to push XRP’s price beyond $0.60, the altcoin could avoid dropping below $0.57.
Instead, a subsequent price increase towards $0.61 could be on the horizon. If this prediction is confirmed, XRP’s price may continue to rise and potentially retest $0.66 within a few weeks.
Read more: 10 Best Altcoin Exchanges In 2024
Failure to surpass the $0.60 mark could negate this forecast. In such a case, the token’s price might drop to $0.52 as sellers could regain dominance.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is meant for informational purposes only and should not be interpreted as financial or investment advice. BeInCrypto is dedicated to delivering precise and impartial reporting, but market conditions can change without prior notice. Always carry out your own research and consult with a professional before making any financial choices. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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