XRP price remains consolidated even after the entire market slumped on September 3 and 4. This is a great show of resilience on the part of XRP. Investors and traders quickly bought the drop below crucial support, creating a long wick that reflects their optimistic sentiment toward XRP. Meanwhile, a new development in the Ripple SEC lawsuit might see settlement pushed later than the proposed September 6. Can Ripple price remain steady while the economic and regulatory wind blows over?

RLUSD Coming Earlier Than Planned, XRP Price to Pump?

Ripple CEO Brad Garlinghouse at Korea Blockchain Week in Seoul said the Ripple RLUSD stable could be issued in “weeks, not months.” Earlier in the year, it was speculated that the stablecoin would launch in November, but with this new information, it seems like RLUSD may come at or before the end of September.

Ripple began testing the stablecoin in early August 2024, and Garlinghouse revealed that the company had hatched its plans as early as March 2023 after USD Coin (USDC) lost its peg.

The implications of a stablecoin launch on the XRP Ledger are truly massive. For instance, the Ethereum ecosystem popped up when Maker DAO came into the picture and introduced the DAI stablecoin. This transformed the DeFi landscape on Ethereum, and price closely followed.

Data from DeFi Llama shows the relationship between stablecoin growth (green)  and blockchain TVL (blue) and price (red) growth with Ethereum as a case study. 

When stablecoin growth exploded in the Ethereum ecosystem in 2021, TVL and price also surged. Meanwhile, the price of XRP has increased by 0.6% in the last 24 hours to $0.5531 amid a sight recovery in Bitcoin price. 

Ripple Needs to Maintain At $0.56 Until Skies Clear

The XRP week-long consolidation has saved it from extreme downsides, especially on September 4, when global traditional markets wiped off over $1 trillion. 

The asset may face more turbulence with the upcoming release of nonfarm payroll data this Friday. Bitcoin price has reacted to this data in the past and could do so again this time.

The XRP price currently bounces between $0.54 and $0.57. It is near the lower boundary of the range, which means there is a higher chance of a 3.75% swing to the upside and a 0.88% drawdown risk. Short-term traders should enjoy this opportunity. 

XRP Price Analysis Chart

In the long term, XRP price sports a potential bear flag that may result in a prolonged downtrend if price action breaks below $0.54. 

The XRP Ledger is a complex crypto project at the technological and regulatory levels. However, the team is making headwinds with its adoption and growth by creating avenues such as Smart contract capability and a stablecoin to allow more liquidity to flow into the chain. This might impact the XRP price positively in the future.

The post XRP Price Holds at $0.56 Amid Ripple vs. SEC Appeal Speculation: What’s Next? appeared first on CoinGape.

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Filed under: News - @ September 5, 2024 7:25 am