Stablecoin

Pepe

Ripple’s token has recovered after bottoming at $0.5078 on Oct. 3 following the announcement of its new US dollar stablecoin. 
Ripple (<a href="https://crypto.news/price/xrp/" target="_blank">XRP</a>) was trading at $0.5500, bringing its market capitalization to $31.2 billion, making it the seventh-largest cryptocurrency. 
Despite this, XRP has underperformed most cryptocurrencies, falling by 6.3% this year. In contrast, Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank">BTC</a>) has risen by 54.4%, while Pepe (<a href="https://crypto.news/price/pepe/" target="_blank">PEPE</a>) has surged by nearly 800%.&nbsp; 
Ripple has achieved several milestones this year. It was fined just $125 million in its long-running lawsuit with the Securities and Exchange Commission, significantly lower than the $2 billion originally requested. 
 You might also like: <a rel="" href="https://crypto.news/ripples-sec-victory-whats-xrp-price-predictions/"> Ripple’s SEC victory: What’s next for XRP price? </a> 
Ripple also launched its RLUSD <a href="https://crypto.news/tag/stablecoin/" target="_blank">stablecoin</a> as it aims to compete with the likes of Tether, Circle, and PayPal. <a href="https://crypto.news/ripple-rolls-out-rlusd-stablecoin-on-uphold-bitstamp-and-bullish/" target="_blank">As was reported last week</a>, the stablecoin will initially be available in several platforms like Uphold, Bitstamp, and MoonPay. 
Stablecoins are a profitable business model in financial services, as demonstrated by Tether’s earnings. Recent filings revealed that Tether was more profitable than Blackrock, which manages over $11 trillion in assets. 
Stablecoin issuers generate revenue by investing their funds in low-risk assets like Treasuries. However, the challenge for new issuers is competing with Tether, which has $120 billion in assets. For instance, PayPal’s PYUSD has only $632 million in assets, making it the ninth-largest stablecoin. 
Ripple also introduced XRP Ledger, an open-source blockchain designed to be a better alternative to Ethereum and Solana. Although it initially recorded strong growth, the total value locked in the <a href="https://defillama.com/chain/XRPL?tvl=true&amp;developers=false&amp;devsCommits=false" target="_blank" rel="nofollow">network has stagnated</a> at around $14.6 million. However, data from Santiment shows that the number of wallets on the chain has increased recently. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 🤯📈 XRP Ledger has spiked in active wallets significantly, reaching 35,799 unique wallets making at least one transfer in a single day, the highest in over 3 months. Additionally, 3,858 new wallets were created in a single day, the highest amount in over 7 months! <a rel="nofollow" href="https://t.co/DcwTzh8NcE" target="_blank">pic.twitter.com/DcwTzh8NcE</a>— Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1848144811385123279?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">October 20, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="xrp-price-may-have-a-bearish-breakout">XRP price may have a bearish breakout</h2> 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/10/XRP-Price.png" alt="XRP price" class="wp-image-14305015">
 <figcaption class="wp-element-caption">
 XRP price chart | Source: <a href="https://www.tradingview.com/symbols/XRPUSD/?exchange=BINANCE" target="_blank" rel="nofollow">TradingView</a>
 </figcaption>
</figure> 
Ripple’s token has risen gradually this month. On the daily chart, it has moved below the Ichimoku cloud, a bearish indicator. 
XRP has also formed a bearish flag pattern, characterized by a long flagpole and a flag-like pattern. The flag section resembles a rising wedge, another bearish sign. 
Ripple remains below the 50-day moving average and has formed a double-top pattern at $0.6592. Therefore, the token will likely experience a bearish breakout in the near term. If this happens, the next point to watch will be $0.5021, the neckline of the double-top pattern, which is 8.50% below the current level. 
 You might also like: <a rel="" href="https://crypto.news/ripple-hits-back-at-sec-files-cross-appeal/"> Ripple hits back at SEC, files cross-appeal </a>

Here’s why Ripple’s XRP is ripe for a bearish breakdown

Table of Contents

crypto.news

Other articles published on Oct 21, 2024

BlackRock’s $26b Bitcoin ETF crowned fastest growing fund

Crypto Bull Run Ahead! Liquidity vs. Market Cycle Explained

Bill Miller predicts advisors will recommend Bitcoin allocation soon

Popular Crypto Platform Faces Cyber Attack, BTC Price Drops

Analysis Company: "The Bull Phase Has Started in Bitcoin", Shares Price Target

Why Are LUMIA and ARPA Crypto Prices Going Up?

Join our free newsletter for daily crypto updates!