Ripple (XRP), the blockchain-based payment project, has begun minting Ripple USD (RLUSD) on-chain. While this has been going on since September, Ripple recorded a high number of stablecoins minted in the last 24 hours as XRP price fell.
While the development could be great for the blockchain, the recent price drop might not sit well with XRP investors. But, according to this analysis, this could change soon.
Ripple Gets the Ball Rolling
RLUSD is a US dollar-dominated stablecoin wholly created by Ripple. Although it is still in the testing phase, Ripple has disclosed that the asset will be for institutions only upon launch. In the last 24 hours, the Ripple stablecoin tracker revealed that the project has minted 2.45 million RLUSD.
Despite the development, XRP retail holders might not benefit from it yet. But crypto whales who have been buying XRP might, as it reflects the growing demand for liquidity in the market.
Five days ago, the altcoin’s value was $0.66 and had hit a six-month high. But today, the token’s price has sunk to $0.59. However, it appears that investors are capitalizing on this discount and buying the dip.
Read more: How To Buy XRP and Everything You Need To Know
According to the daily chart, XRP’s Bull Bear Power (BBP) is positive. The BBP compares the highest and lowest prices of an asset to its Exponential Moving Average (EMA). With this, the technical indicator can tell the strength of buyers and sellers.
When it is negative, sellers (bears) are in control. But since it is positive, as shown below, it means that bulls are buying the token. This interestingly coincides with a major XRP ETF application.
XRP Price Prediction: Bullish Reversal Imminent
Although XRP’s price has recently decreased, the daily chart shows the formation of an inverse head-and-shoulder pattern. This pattern is a bearish-to-bullish reversal, showing three successive lows and marking the end of a downtrend.
The right shoulder, as shown below, suggests that sellers might be getting exhausted. To validate this point, the XRP price has to break above the neckline at $0.60. If bulls push XRP’s price above $0.60, then the altcoin might evade dropping below $0.57.
Instead, a price increase toward $0.61 could be next. If validated, XRP’s price might continue climbing and could retest $0.66 within a few weeks.
Read more: 10 Best Altcoin Exchanges In 2024
However, failure to break past $0.60 could invalidate this prediction. In that scenario, the token’s value could sink to $0.52 as sellers might take control again.
Disclaimer
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