XRP price today pulled back by 3% as its recent rally took a breather amid a wave of profit-taking among crypto investors. Its dip brought its valuation to $133 billion. However, technicals suggest that the Ripple price is on the verge of a strong surge as the RLUSD stablecoin volume surges by 45%.
XRP Price to Surge to $3.5 as RLUSD Stablecoin Volume Jumps
The XRP price has several catalysts that may propel it significantly higher in the long term. One of these drivers is its potential to disrupt the financial market by disrupting the SWIFT Network that connects over 11,000 banks.
The other key catalysts for the surge is its foray into the stablecoin industry. Ripple USD (RLUSD), its stablecoin, continues to gain market share as its market cap has jumped to nearly $300 million.
CoinGecko data shows that the 24-hour volume of RLUSD increased by 45% to $110 million, indicating growing usage. That figure means that RLUSD is one of the most popular stablecoins in crypto since its daily volume is higher than other well-known names like USDS, Ethena USDe, TrueUSD, and Justin Sun’s USDD.
RLUSD’s volume increase happened a day after it was incorporated in Aave V3. This addition enables AAVE users to supply and borrow it easily. Ripple Labs also made the strategic move to burn 12 million RLUSD tokens, a move aimed at reducing its supply and boosting its demand. Earlier this month, Ripple added RLUSD into its payment network, which will eventually lead to higher volume over time.
Ripple Price Analysis and Targets
The ongoing growth of its stablecoin and the recent end of its legal issues has fueled optimism that XRP price is about to surge. One crypto analyst who has followed it for years now believes that the coin will eventually hit $1,000. This is unrealistic, as it would push its market cap to $100 trillion.
Still, a simple technical analysis shows that the coin is on the verge of a rally, possibly to the psychological point at $3.5.
The three-day chart below shows that it has formed two highly bullish chart patterns that may fuel this surge. The orange lines show that it has created a falling wedge pattern whose trendines are about to meet.
XRP price has now flipped the upper side of this pattern, potentially confirming this breakout. The coin has also formed a bullish pennant pattern, a positive technical formation characterized by a vertical line and a triangle.
Therefore, the value of XRP is likely to surge to its year-to-date high of $3.4. Rising above that level will increase the possibility of it reaching $3.5, a 60% increase from the current point.
A plunge below the year-to-date low of $1.6225 will cancel the bullish outlook. Such a crash may put it in danger of a drop to $1.
The post XRP Price Poised for $3.50 Breakout as RLUSD Volume Soars 45% appeared first on CoinGape.
