XRP Price Sports a Potential Bear Flag as RLUSD Stablecoin Launch Nears

XRP price remains consolidated even after the entire market slumped on September 3 and 4. This is a great show of resilience on the part of XRP.

XRP price remains in a holding pattern despite a broader market sell-off on September 3 and 4. This consolidation showcases XRP's resilience, with investors and traders swiftly buying the dip below critical support, highlighted by a long wick, indicating optimism toward the token.

However, a new development in the Ripple SEC lawsuit might delay the proposed September 6 settlement. Can Ripple price hold its ground amidst these economic and regulatory headwinds?

RLUSD Coming Sooner, XRP Price to Pump?

Ripple CEO Brad Garlinghouse, at Korea Blockchain Week in Seoul, stated that the Ripple RLUSD stablecoin could be issued in “weeks, not months.” Previously, it was reported that the stablecoin would launch in November, but this new information suggests an earlier launch, possibly at or before the end of September.

Ripple began testing the stablecoin in early August 2024, and Garlinghouse revealed that the company began planning the stablecoin as early as March 2023, following USD Coin (USDC) losing its peg.

The implications of a stablecoin launching on the XRP Ledger are significant. For example, the Ethereum ecosystem flourished with the introduction of Maker DAO and the DAI stablecoin, which transformed DeFi on Ethereum, and the network's price followed suit.

Data from DeFi Llama shows the correlation between stablecoin growth (green) and blockchain TVL (blue) and price (red) growth, using Ethereum as a case study.

When stablecoin growth exploded in the Ethereum ecosystem in 2021, both TVL and price also surged. Meanwhile, XRP price showed a 0.6% gain in the last 24 hours, trading at $0.5531, as Bitcoin price saw a slight recovery.

Ripple Must Hold At $0.56 Until Skies Clear

XRP's week-long consolidation has shielded it from extreme lows, especially on September 4, when global traditional markets lost over $1 trillion.

More turbulence might hit the asset with the upcoming nonfarm payroll data on Friday, which Bitcoin price has reacted to in the past.

In the shorter time frame, XRP price bounces between $0.54 and $0.57. It currently trades near the lower boundary of the range, indicating a higher probability of a 3.75% upswing and a 0.88% downside risk. Short-term traders could capitalize on this opportunity.

However, in the longer time frame, XRP price sports a potential bear flag that may lead to an extended downtrend if price action breaks below $0.54.

The XRP Ledger is a complex crypto project from both a technological and regulatory standpoint. Yet, the team is making strides in driving adoption and growth by introducing capabilities like smart contracts and a stablecoin to facilitate greater liquidity flow into the chain, which could bode well for the XRP price in the future.

Common questions (FAQs) about XRP price, Ripple SEC lawsuit and RLUSD stablecoin:

1. How does the Ripple vs. SEC lawsuit affect the XRP price?

2. What is RLUSD, and why is it important for XRP?

3. What should traders watch for in the XRP price action?

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