XRP price has sunk into a bear market after plunging by 23% from its highest point this year. Still, its strong technicals and fundamentals point to a strong rebound in September.
Summary
- XRP price has plunged by 23% from the year-to-date high.
- Ripple USD stablecoin supply jumped to a record high of $701 million.
- XRP futures continued gaining momentum, three months after launch.
RLUSD and CME Futures growth
Ripple (XRP) price retreated to $2.8160 as the recent momentum in the crypto market stalled. However, data shows that the ecosystem is doing well, which may help it rebound in September.
CoinMarketCap data shows that Ripple USD (RLUSD) stablecoin is firing on all cylinders. Its assets crossed the $700 million on Saturday and jumped to a record high of $701 million.
RLUSD’s growth is more impressive when compared to PayPal’s PYUSD, whose supply was $1.1 billion two years after its launch. Its daily transaction volume has also jumped in the past few months, including its usage during the Bullish IPO.
The growing RLUSD numbers is a good thing for XRP price because it boosts the utility of the XRP Ledger.
More data shows that there is a strong demand for XRP assets in Wall Street. CME XRP futures open interest has rocketed to a record high of $1 billion, the fastest-ever contract to do that as it achieved that in three months.
Other XRP-related assets in the US have had strong traction in the United States. For example, the Teucrium 2X Long Daily XRP ETF, whose ticker symbol is XXRP, has added assets in all months since inception. It now has over $352 million in assets under management.
These numbers mean that American investors will likely welcome the spot XRP ETFs when the Securities and Exchange Commission approves them, possibly in September.
XRP price technical analysis
The daily timeframe chart shows that the XRP price has pulled back in the past few weeks. It has dropped from the year-to-date high of $3.6640 to $2.8325.
XRP has remained above the 100-day Exponential Moving Average, a sign that bulls are in control. The coin has formed the bullish pennant pattern, which is characterized by a vertical line and a symmetrical triangle whose two lines are about to converge.
Therefore, the token will likely have a strong bullish breakout in the coming weeks, with the next point to watch being at $3.6640, up by 30% from the current level. A move above that level will point to more gains, potentially to $5.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
