Ripple's decision to introduce its stablecoin on both the Ethereum and XRP Ledger blockchains led to a sudden rise in XRP value, with a notable 10% increase in just one hour.
This move highlights Ripple's strategic response to the growing demand for stablecoins among traders seeking stability in the face of volatile price fluctuations in major cryptocurrencies such as Bitcoin and Ethereum.
The stablecoin, set to launch later this year, will be supported by deposits in US dollars, short-term US government securities, and other similar assets. Initially, the stablecoin will be accessible on Ripple's XRP Ledger and the Ethereum blockchain, following the ERC-20 token standard.
XRP faced challenges due to recent market downturns, resulting in a substantial liquidation of approximately $2.85 million and a decline in XRP's price to a two-week low. Despite these setbacks, XRP managed to surpass its EMA trend lines, reaching a peak of $0.617. While encountering resistance at this level, XRP is currently trading at $0.594, indicating a 2.4% increase in the past 24 hours.
Looking ahead, the future price movement of XRP remains uncertain, with possible resistance levels at the 100-day EMA, along with the potential for decline to $0.52 or a surge towards significant resistance levels at $0.69 and $0.74.
