The XRP price was trading above a crucial support level on Wednesday after Kraken added its stablecoin.
Ripple (XRP) was trading at $2.10, down over 37% from its highest level this year. The decline has brought its market cap to $126 billion, making it the fourth-largest cryptocurrency.
The biggest XRP news was that Kraken, a top American crypto exchange, listed Ripple USD, (RLUSD), its stablecoin. The listing gives RLUSD access to over 13 million customers across the U.S. and other countries.
RLUSD has been growing steadily since its launch a few months ago. Its market cap has jumped to a record high of $243 million.
Most importantly, unlike many larger stablecoins, there are signs that RLUSD is being actively used in payments and trading. Its 24-hour volume consistently tops $70 million, while other stablecoins like Ondo US Dollar Yield, USDD, Frax, and PayPal USD rarely cross $50 million. Since its December launch, RLUSD has handled over $10 billion in volume.
Ripple Labs hopes that the RLUSD stablecoin will be a core part of its payment ecosystem. On Wednesday, the company integrated RLUSD into Ripple Payments, driving enterprise demand and utility.
This integration is designed to facilitate instant cross-border payments and create a bridge between fiat currencies and crypto. RLUSD is also expected to play a key role in real world asset tokenization.
XRP price is hanging on a thread
There are signs that XRP price is hanging on a thread. On the daily chart, it is hovering just above the crucial support level at $1.910 which is the 50% Fibonacci retracement level. This price is also notable as the neckline of a head and shoulders chart pattern.
A head and shoulders pattern is a well-known bearish reversal signal, marked by a peak (the head), two smaller highs (the shoulders), and a neckline. A drop below this neckline would suggest further downside, potentially toward the $1.50 support level, which aligns with the 61.8% Fibonacci retracement, often referred to as the “golden ratio,” where rebounds tend to occur.
On the positive side, bulls could return and push the price higher in the near term. The H&S pattern would be invalidated if XRP breaks above the shoulders area at $3.
