The post Ripple News Today: RLUSD Launch on XRP Ledger – Can It Boost XRP Price? appeared first on Coinpedia Fintech News
Ripple has begun minting its new stablecoin, RLUSD, on the XRP Ledger and Ethereum mainnet. This initial phase involves minting 385 RLUSD tokens, with 185 on the XRP Ledger and 200 on Ethereum. The RLUSD is pegged 1:1 to the U.S. dollar and backed by a mix of dollar deposits, short-term U.S. government treasuries, and cash equivalents, with reserves audited and attested monthly.
Impact on XRP Price
The launch of RLUSD is expected to boost XRP’s price by enhancing liquidity on the XRP Ledger. Historical trends show that stablecoin launches can positively influence blockchain tokens’ value. For example, Ethereum saw price gains following the launch of MakerDao’s DAI, and Tron benefited from Tether’s integration. A similar effect is anticipated for XRP.
According to on-chain researcher SMQKE, Bitcoin and Ethereum’s “Tether bubble” collapse could make XRP and RLUSD dominant in the crypto space. Moreover, Ripple’s stablecoin will bridge Tether’s liquidity gap and establish XRP as a cornerstone of the digital economy.
Cobb, among other X users, cheered the decision and said the stablecoin’s launch might boost XRP’s price.
Technical Analysis
Moving on, XRP’s current price consolidates within a pennant pattern, signaling a potential breakout. XRP continues to trade well above its 50-day and 200-day EMAs, confirming positive price signals. If the price revisits $0.60, it might pave the way toward the August 7 high of $0.6434. A successful breakout beyond this level could propel XRP towards the $0.6609 resistance.
Analysts suggest two scenarios: a bearish breakout leading to a price correction or a bullish breakout resulting in a significant price increase. The RLUSD launch could influence these outcomes, with potential support and resistance levels identified at $0.568 to $0.573 and $0.643 to $0.657, respectively.
Regulatory Considerations
Despite Ripple’s recent legal challenges, including a $125 million penalty imposed by Judge Torres, the company remains committed to its stablecoin project. While still pending full regulatory approval, this move into stablecoins indicates Ripple’s resilience and strategic focus.
Hence, RLUSD’s ongoing beta phase will be crucial for assessing its impact on the XRP Ledger and broader market dynamics. It will mark a significant step in Ripple’s expansion and innovation efforts. According to the plan, RLUSD would compete with stablecoins like USDT and USDC. It will mainly be used by payment organizations, enterprises, and institutions.
Will XRP rise or fall with the RLUSD? Time will tell.