XRP price remained under pressure this week and moved close to a bear market despite some notable ecosystem news from Bullish, the Peter Thiel-backed cryptocurrency exchange that went public last week.
Summary
- XRP price wavered after Bullish confirmed that it used RLUSD to receive proceeds of its initial public offer.
- RLUSD market cap has jumped to over $666 million, and its monthly volume rose to $2 billion.
- Ripple price has formed a cup-and-handle pattern, pointing to more gains.
Ripple (XRP) token dropped to the psychologically important support at $3, down by 17% from its highest point this year. Its market cap has dropped from nearly $200 billion to $179 billion today.
Bullish uses RLUSD for IPO proceeds
In a statement, Bullish said that it selected to use stablecoins to receive the $1.5 billion proceeds of its IPO.
While most of the proceeds were in Circle’s USDC, another portion was made using Ripple USD (RLUSD) and other stablecoins, such as PayPal’s PYUSD and World Liberty Financial’s USD1. David Bonanno, Bullish CFO said:
“We view stablecoins as one of the most transformative and widespread use cases for digital assets. We believe our collaborations with the stablecoin issuers represented here, demonstrate how the infrastructure and liquidity we’ve built at Bullish helps power their businesses.”
Ripple’s RLUSD has become one of the fastest-growing stablecoins in the industry. Launched in December last year, its supply has jumped to over $666 million, and its daily volume has jumped to over $171 million.
Artemis data shows that the volume of RLUSD jumped by 99% to $2.6 billion in the last 30 days. This surge happened even as the number of transactions fell by 14% to 416,000.
RLUSD will be one of the top stablecoins to benefit from the recent passing and signing of the GENIUS Act, which introduces guidelines governing the industry in the United States.
Its success will benefit XRP price by creating more use cases for the XRP Ledger. It will also lead to higher fees, which will lead to more XRP burning, reducing the amount in circulation.
Data shows that the amount of stablecoins, especially RLUSD, has jumped by 30% in the last 30 days, a trend that may continue as it becomes more mainstream.
Ripple has been expanding its presence in the stablecoin industry recently. Earlier this month, the company acquired Rail, a stablecoin-powered platform for global payments. In its announcement, the company said that the buyout will help it offer the most comprehensive stablecoin payment solution in the market.
XRP price technical analysis
The daily timeframe chart shows that the XRP price has formed two unique chart patterns that may lead to a strong bullish breakout over time.
It formed a cup-and-handle pattern, which often leads to more gains. It is made up of a rounded bottom and a consolidation, which is part of the handle section.
A closer look at this handle shows that it resembles the inverse head-and-shoulders pattern, which also leads to more gains over time.
XRP price remains above the 50-day and 100-day Exponential Moving Averages, which have provided it with substantial support.
Therefore, the token will likely have a strong bullish breakout, potentially to the psychological level of $5.2. A drop below the head section at $2.7 will invalidate the bullish outlook.
