On Wednesday, the price of XRP was trading above a vital support level following the addition of its stablecoin by Kraken.
Ripple (XRP) was priced at $2.10, reflecting a decline of over 37% from its peak this year. This downturn has resulted in a market capitalization of $126 billion, ranking it as the fourth-largest cryptocurrency.
The most significant development for XRP was Kraken, a prominent U.S. crypto exchange, listing Ripple USD (RLUSD), its stablecoin. This listing provides RLUSD with access to over 13 million users across the United States and beyond.
Since its launch a few months ago, RLUSD has seen consistent growth, achieving a market cap of $243 million—a new record.
Crucially, in contrast to many larger stablecoins, RLUSD is showing signs of active usage in both payments and trading. Its 24-hour trading volume often exceeds $70 million, while other stablecoins such as Ondo US Dollar Yield, USDD, Frax, and PayPal USD rarely surpass $50 million. Since its introduction in December, RLUSD has processed over $10 billion in volume.
The creators of Ripple are optimistic that the RLUSD stablecoin will become a central component of their payment ecosystem. On Wednesday, the company integrated RLUSD into Ripple Payments, enhancing enterprise demand and utility.
This integration aims to streamline immediate cross-border transactions and establish a connection between fiat currencies and cryptocurrencies. RLUSD is also anticipated to play a significant role in the tokenization of real-world assets.
XRP price is precarious
Indications suggest that the price of XRP is precarious. On the daily chart, it is hovering just above a key support level at $1.910, which corresponds to the 50% Fibonacci retracement level. This price point is also significant as it represents the neckline of a head and shoulders pattern.
A head and shoulders pattern is a well-established bearish reversal indicator, characterized by a peak (the head) flanked by two smaller highs (the shoulders) and a neckline. A fall below this neckline would imply further declines, possibly towards the support level of $1.50, aligning with the 61.8% Fibonacci retracement—often termed the “golden ratio,” where recoveries typically take place.
On the bright side, bullish momentum could return and elevate the price in the near future. The head and shoulders pattern would be negated if XRP surpasses the shoulder area at $3.