XRP Price Trends Indicate Surge as Bullish Integrates RLUSD for IPO
This week, XRP’s price has encountered notable pressure, inching closer to a bear market, despite significant updates from Bullish, the cryptocurrency exchange supported by Peter Thiel that recently went public.
Summary
- XRP’s price shifted after Bullish revealed its use of RLUSD for proceeds from its initial public offering.
- RLUSD’s market cap has skyrocketed past $666 million, with its monthly trading volume hitting $2 billion.
- Ripple has formed a cup-and-handle pattern, suggesting potential for further upward movement.
The Ripple (XRP) token has dropped to a crucial support level of $3, reflecting a 17% decline from its peak this year. Its market cap has decreased from nearly $200 billion to $179 billion today.
Bullish Utilizes RLUSD for IPO Proceeds
Bullish has officially announced its intention to use stablecoins to receive the $1.5 billion in IPO proceeds.
While most of the funds were in Circle’s USDC, a portion was also allocated in Ripple USD (RLUSD), along with other stablecoins like PayPal’s PYUSD and World Liberty Financial’s USD1. Bullish CFO David Bonanno remarked:
“We regard stablecoins as one of the most transformative and widespread applications of digital assets. Our partnerships with the listed stablecoin issuers demonstrate how the infrastructure and liquidity we have developed at Bullish support their operations.”
Ripple’s RLUSD has quickly emerged as one of the fastest-growing stablecoins in the market. Launched last December, its supply has surpassed $666 million, with daily trading volume exceeding $171 million.
Data from Artemis shows that RLUSD’s trading volume jumped by 99% to $2.6 billion in the past month, although the number of transactions decreased by 14% to 416,000.
RLUSD is set to become a leading stablecoin benefiting from the recent enactment of the GENIUS Act, introducing regulatory frameworks for the industry in the United States.
This success is expected to positively influence XRP’s price by creating additional use cases for the XRP Ledger and increasing transaction fees, ultimately leading to more XRP being burned and a decrease in supply.
Recent reports indicate that the total amount of stablecoins, particularly RLUSD, has risen by 30% in the past month, a trend anticipated to continue as it gains broader acceptance.
Ripple is actively expanding its presence in the stablecoin market. Earlier this month, the company obtained Rail, a global payment platform focused on stablecoins. This acquisition aims to enhance Ripple’s ability to provide a comprehensive stablecoin payment solution.
XRP Price Technical Analysis
The daily chart shows that XRP has formed two prominent chart patterns that might indicate an impending bullish breakout.
It has established a cup-and-handle pattern, which typically precedes further upward movement. This pattern is characterized by a rounded bottom followed by a consolidation that forms part of the handle.
Upon closer analysis, this handle also resembles an inverse head-and-shoulders pattern, often predicting additional upward movement.
XRP’s price currently stands above the 50-day and 100-day Exponential Moving Averages, which have provided substantial support.
As such, the token is likely approaching a significant bullish breakout, with the potential to reach the psychological level of $5.2. Conversely, a decline below the head section at $2.7 would contradict this bullish perspective.