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. This development could be beneficial for the blockchain ecosystem, yet the recent price decline might concern XRP investors. However, according to recent analyses, this situation may change soon.
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 available 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 this development, XRP retail holders may not benefit from it yet. However, crypto whales who have been buying XRP might see potential gains, reflecting the increasing demand for liquidity in the market.
Five days ago, the altcoin’s value was $0.66, hitting a six-month high. Today, however, the token’s price has decreased to $0.59. Interestingly, investors seem to be capitalizing on this dip.
According to the daily chart, XRP’s Bull Bear Power (BBP) is currently positive. The BBP compares the highest and lowest prices of an asset to its Exponential Moving Average (EMA), indicating the strength of buyers versus sellers. A positive BBP indicates that bulls are buying the token, coinciding with a significant XRP ETF application.
Although XRP’s price has recently decreased, the daily chart shows the formation of an inverse head-and-shoulder pattern, indicating a bearish-to-bullish reversal. This pattern suggests that sellers might be getting exhausted. For the bullish scenario to be validated, the XRP price needs to break above the neckline at $0.60. If bulls manage to push XRP’s price above this threshold, the altcoin might avoid dropping below $0.57 and could see a price increase towards $0.61. If validated, XRP’s price might continue to rise, potentially retesting $0.66 within a few weeks.
However, failure to break past $0.60 could invalidate this prediction, potentially leading to a decrease in the token’s value to $0.52 as sellers might regain control.
