The cryptocurrency XRP has shown considerable resilience despite a cautious market sentiment. At press time, XRP was trading at $2.18, reflecting a modest 0.2% increase over the past 24 hours. The coin rebounded from a dip to $2.06, recovering most of its intraday losses.
Ripple USD (RLUSD) Sees Significant Volume Decline
While XRP exhibits strength, Ripple’s stablecoin, Ripple USD (RLUSD), has experienced a dramatic drop in market activity. Transaction volume for RLUSD decreased by over 60%, plummeting to approximately $42 million, according to CoinMarketCap data.
This decrease is attributed to a halt in minting, with Ripple having not issued new RLUSD tokens for over 41 days. This prolonged pause raises questions about whether it reflects a strategic decision to limit supply or a decline in demand for the asset.
The fall in transaction volume has sparked speculation regarding its potential impact on the XRP Ledger ecosystem. Analysts suggest that decreased activity in RLUSD may reduce liquidity on decentralized exchanges and applications built on XRPL.
Initially launched to compete with dominant stablecoins like USDT and USDC, the recent downturn indicates a possible stagnation in user adoption for RLUSD. Nevertheless, XRP remains relatively unaffected by this slowdown, largely due to its broader utility in cross-border payments and remittances.
Despite the intertwined nature of both assets within the Ripple ecosystem, XRP’s price dynamics seem to diverge from those of RLUSD. This separation underscores the notion that XRP’s valuation is influenced more by investor sentiment and trading activity than by RLUSD’s performance.
XRP Price Forecast
Over the past week, XRP has traded within a narrow range of $2.09 to $2.28, signifying a consolidation phase. The coin has indeed recorded a remarkable annual gain of 313.9%, a strong indicator of underlying investor confidence.
Even amid the formation of a “death cross” (the 50-hour moving average crossing below the 200-hour moving average) on the hourly chart—a typically bearish signal—XRP defied expectations and staged a recovery.
XRP bulls have managed to defend critical support levels, triggering a rebound that coincided with a more than 70% increase in transaction volume, which surged to $3.5 billion in 24 hours. This robust volume support highlights that buyer interest remains active, even amidst mixed technical indicators.
Looking ahead, XRP’s price outlook reflects a balance of caution and optimism. On the hourly chart, the asset is attempting to break above short-term resistance at $2.19, aligning with the 200-hour simple moving average. A successful breakout above this level could pave the way for another test of the $2.28 area, marking a recent high.
However, failing to close above $2.19 may trigger a retreat toward $2.15, a range where XRP has shown stability in recent sessions. On the daily chart, XRP recently bounced off a support level at $2.0777, suggesting that bullish sentiment is not fully exhausted.
Although momentum has slowed, the asset remains within a consolidation channel between $2.15 and $2.25. Unless sellers take control, this range-bound behavior is expected to continue in the short term.
A strong weekly close above $2.25 could rekindle hopes for a push towards the $2.40 mark, which would represent a new local high. In the short term, as long as key support levels hold and volume remains elevated, XRP may continue to trade with a slight upward bias in the coming days.
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