XRP price continued to consolidate on Wednesday as investors remained on the sidelines and as the falling wedge chart pattern continued to form.
Summary
- XRP price has formed a falling wedge, a cup-and-handle, and a bullish flag pattern.
- XRP Ledger is slowly becoming a powerhouse in the RWA industry.
- RLUSD is one of the stablecoins in the newly launched Horizon platform by Aave.
Ripple (XRP) price was trading at the important support level of $3, down 18% from its highest level this year.
A potential catalyst for the XRP price is the growing role of the XRP Ledger in the real-world asset tokenization industry. Data compiled by RWA.xyz shows that it has become the ninth biggest chain in the industry.
There are ten RWA assets on the XRP Ledger with over $301 million in value. This value has increased by almost 23% in the last 30 days, making it the second-fastest-growing chain after BNB Smart Chain, whose assets have surged by 760% in the same period.
Brazil’s VERT Capital is the biggest player in the XRP Ledger network with over $114 million. It launched its tokenized credit platform on the chain in July of this year.
The other top players in its ecosystem are Ripple USD (RLUSD), OpenEden Digital, Archax, and Ondo.
This growth will likely accelerate after Ripple partnered with Aave Labs, which launched Horizon, an institutional platform to enable stablecoin borrowing against RWAs like Superstate Crypto Carry Fund and Janus Henderson Anemoy Treasury Fund.
RLUSD, which is nearing $700 million in assets, will be one of the top stablecoins in the ecosystem. In a note, Jack McDonald, the senior vice president of stablecoins at Ripple, said:
“By working with Aave on Horizon, we’re helping extend that efficiency to tokenized products, with RLUSD enabling them to be used as collateral and flow more efficiently across markets.”
XRP price technical analysis
XRP token has numerous fundamental catalysts, including its role in RWA, soaring CME futures open interest, and the upcoming XRP ETF approvals.
It also has strong technicals. As the chart above shows, it has remained above the key psychological level at $3 and the 50-day and 100-day Exponential Moving Averages, a sign that the uptrend is intact.
XRP price has also formed a falling wedge pattern whose two lines are nearing their confluence point, where bullish breakouts happen.
The falling wedge pattern is also part of the formation of the bullish flag and the handle section of the cup and handle pattern.
Therefore, the combination of these patterns will lead to a strong bullish breakout, potentially to the psychological level at $5 in the next few weeks.
