XRP pulls back 4% even as Ripple releases details of stablecoin RLUSD

• XRP corrects on Wednesday, down nearly 4% to $0.5644. 
• Ripple releases details of its stablecoin, RLUSD, says the asset is geared toward regulatory compliance. 
• Ripple mentions Clarity of Payments Stablecoin Act, which if passed could support innovation in the asset class. 

Ripple (XRP) shared details of its stablecoin project Ripple USD (RUSD) in a blog published on Tuesday. The cross-border payment remittance firm discusses relevant legislation and plans to support the digital asset economy through RLUSD. 

XRP erased nearly 4% value on Wednesday despite that announcement with the coin trading at $0.5644. 

Daily digest market movers: XRP corrects even as Ripple discusses RLUSD application, future plans

• Ripple discussed the demand for its stablecoin RLUSD, regulatory compliance, and the regulation that could support innovation in stablecoins and blockchain technology in the US. 

• Ripple’s post says stablecoins combine speed, security and efficiency of the blockchain, and it argues the declining use of cash paves way for adoption of stables. 
• Ripple is used to offering cross-border payment remittance at low cost, and the launch of RLUSD for stablecoins would assure the same. 
• While most cryptocurrencies face the double spend problem, where a token can be spent more than once through an alteration in the blockchain, stablecoins eliminate this challenge and provide a reliable and low-cost alternative to users. 
• Ripple CTO David Schwartz said in a recent tweet on X that RLUSD will only ever be available to institutions and compared the asset to Circle’s USD Coin (USDC) and USD Tether (USDT). 

Technical analysis: XRP could lose 9% to sweep low at $0.5188

XRP attempted to break out of its multi-month downward trend on four occasions between July and September 2024 to no avail. XRP remains range-bound between the September 6 low of $0.5026 and the August 7 high of $0.6434. 

The Relative Strength Index (RSI), a momentum indicator, reads neutral at 50. 

XRP could erase 8.5% of its value and extend losses to the lower boundary of the Fair Value Gap (FVG) between $0.5188 and $0.5785, as seen in the XRP/USDT daily chart. 

XRP/USDT daily chart

XRP could also rally toward the FVG between $0.5970 and $0.6217, if the asset successfully breaks out of the downward trend.