Can Ripple’s Attempt to Launch Stablecoin Help XRP Surge?

• Ripple revealed that it could be involved in a stablecoin development soon.
• Selling pressure has driven XRP to fall below $0.70 since previously hitting $0.84.
• If the MACD rises and RSI falls, then XRP may breakout into another rally.

As a blockchain-payment firm, Ripple (XRP) is familiar with expansion and providing payment solutions. On July 26, Ripple announced that it had followed a similar path. But this time it was not the usual infrastructural provision for cross-border payments.

According to Ripple, its November 2021 partnership with the Republic of Palau has resulted in the development of a stablecoin. Furthermore, Ripple added that the proposed stablecoin, which would be pegged to the U.S. Dollar would operate on the XRP Ledger (XRPL).

XRPL Gets to Work

For the unfamiliar, the XRP Ledger is the peer-to-peer public blockchain that allows for real-time transfer of XRP, and other fiat assets. Therefore, it is possible that the development, if concluded, could drive an increase in XRP adoption.

Consequently, this could also leave a positive impact on XRP. But from the technical outlook XRP which just partially came out of a battle with the U.S. SEC may not reap an uptrend immediately.

Based on CoinMarketCap’s data, the fourth-ranked cryptocurrency by market capitalization has lost 9.35% of its value in the last seven days. From the XRP/USD 4-hour chart, the decrease was a result of consistent selling pressure since XRP tapped $0.84.

XPR Is Between Highs and Lows

Although XRP had formed a falling wedge since the price hit lower highs and lower lows, a bullish confirmation had not yet appeared at $0.67.

Furthermore, XRP’s decrease in volume means that an attempt at a sustained uptrend may not get the strength required.

Additionally, the Relative Strength Index (RSI) was 46.19. This reading is not considered to favor the bulls. If the RSI inches closer to 40 or below, then traders may look for a buying opportunity since XRP would have corrected.

But at the current state, caution is advised. Therefore, traders might need to look out for other supporting signals.

At press time the Moving Average Convergence Divergence (MACD) was 0.0042. But the 12-period EMA (blue) had risen above the  26-period EMA (orange). This signals a possible recovery by buyers.

However, the MACD would also need to rise above the zero-signal line to confirm a bullish market structure. If the MACD continues rising and the RSI keeps falling, then it could be a signal to long XRP.

In this case, the falling wedge mentioned above could lead to a breakout in the upward direction.

In the interim, XRP has the potential to trend upwards provided it meets the above conditions. Meanwhile, Ripple also confirmed that it was in the first phase of the stablecoin deployment.

Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.