The price of XRP is teetering on a crucial support level after Kraken, one of the largest U.S. crypto exchanges, added Ripple’s stablecoin, RLUSD.
Currently trading at $2.10, XRP has dropped more than 37% from its yearly peak, bringing its total market cap down to $126 billion, securing its spot as the fourth-largest cryptocurrency.
Kraken’s Listing Pushes RLUSD Growth
Kraken’s listing of RLUSD now gives the stablecoin exposure to over 13 million users across multiple countries. Since its launch a few months ago, RLUSD has shown steady growth, hitting a record market cap of $243 million.
What sets RLUSD apart from other stablecoins is its active usage. While many stablecoins struggle to maintain strong trading volumes, RLUSD consistently records $70 million in daily transactions, surpassing competitors like USDD, Frax, and PayPal USD, which rarely exceed $50 million. Since December, RLUSD has handled over $10 billion in total transaction volume.
Ripple’s Vision: Expanding RLUSD Utility
Ripple has bigger plans for RLUSD beyond just trading. The company recently integrated RLUSD into Ripple Payments, enhancing its use in real-world transactions, especially for cross-border payments. Additionally, RLUSD is expected to play a significant role in real-world asset tokenization, further embedding itself into the digital finance ecosystem.
XRP’s Uncertain Price Outlook
Despite RLUSD’s progress, XRP itself is at a critical juncture. The coin is hovering just above the $1.91 support level, which aligns with the 50% Fibonacci retracement level—a key technical indicator.
Traders are closely watching a Head and Shoulders (H&S) pattern, a bearish signal that could push the price lower. If XRP breaks below $1.91, it might drop to $1.50, which is aligned with the golden ratio (61.8% Fibonacci retracement)—a level where assets often find strong support.
On the flip side, if bulls regain control and XRP breaks past the $3 resistance level, it could invalidate the bearish pattern and fuel a strong recovery.
For now, XRP holders are keeping a close eye on market movements, as the next breakout—either up or down—could set the tone for its short-term future.
