XRP Price on the Edge as Kraken Adds RLUSD

The XRP price is currently teetering near a critical support level after a significant announcement from Kraken regarding the listing of RLUSD, Ripple’s USD-backed stablecoin. On Wednesday, XRP was trading at $2.10, marking a drop of more than 37% from its peak earlier this year. This decline has reduced XRP’s market capitalization to approximately $126 billion, solidifying its position as the fourth-largest cryptocurrency by market cap.

The major development for XRP was the listing of Ripple USD (RLUSD) on Kraken, a leading U.S.-based cryptocurrency exchange. This listing grants RLUSD access to Kraken’s large user base of over 13 million customers, spanning both the U.S. and international markets. Since its launch in December 2024, RLUSD has seen steady growth, with its market capitalization recently reaching an all-time high of $243 million.

What sets RLUSD apart from other stablecoins is its active usage in both payments and trading. The stablecoin’s 24-hour trading volume consistently exceeds $70 million, a significant achievement compared to other popular stablecoins like Ondo US Dollar Yield, USDD, and PayPal USD, which rarely surpass $50 million in volume. Since its debut, RLUSD has handled more than $10 billion in trading volume, indicating increasing adoption.

Ripple Labs, which developed RLUSD, views the stablecoin as a key component of its broader payment ecosystem. Recently, Ripple integrated RLUSD into Ripple Payments, a move intended to drive enterprise demand for the stablecoin. This integration facilitates instant cross-border payments and helps bridge the gap between fiat currencies and cryptocurrencies. Moreover, RLUSD is expected to play a central role in the tokenization of real-world assets, positioning it as a critical player in Ripple’s broader vision for global payments.

Despite these positive developments, XRP’s price is facing significant pressure. On the daily chart, XRP is struggling to maintain its position just above the $1.91 support level, which corresponds to the 50% Fibonacci retracement level. This level is particularly important as it also serves as the neckline of a head and shoulders (H&S) pattern, a bearish reversal signal in technical analysis.

If XRP’s price drops below this neckline, it could signal further downside, potentially testing the $1.50 support level, which aligns with the 61.8% Fibonacci retracement—a key level where price reversals often occur, referred to as the “golden ratio”. On the other hand, if XRP manages to break above the shoulders area around $3, the head and shoulders pattern would be invalidated, and bullish momentum could return, pushing the price higher.

Overall, the price of XRP is at a critical juncture, with both positive developments like the integration of RLUSD and technical risks like the head and shoulders pattern influencing its near-term outlook. How XRP responds to these challenges will determine its direction in the coming days.