Ripple says stablecoin is built with regulatory compliance, XRP up to $0.56

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

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

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

Daily Market Reasons: XRP Corrects Even As Ripple Discusses RLUSD Application, Future Plans

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

• Ripple’s post says stablecoins combine the speed, security and efficiency of blockchain and argues that the declining use of cash paves the way for stable adoption.
• Ripple is used to providing low-cost cross-border payment remittances, and the launch of RLUSD for stablecoins would ensure the same.
• While most cryptocurrencies face the problem of double-spending, where a token can be spent multiple times through a change in the blockchain, stablecoins eliminate this challenge and offer users a reliable and low-cost alternative.
• Ripple CTO David Schwartz said in a recent tweet on X that RLUSD will only 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 reach $0.5188

XRP tried to break out of its multi-month downtrend four times between July and September 2024 to no avail. XRP remains capped between the September 6 low of $0.5026 and the August 7 high of $0.6434.

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

XRP could wipe out 8.5% of its value and extend losses to the lower bound of the fair value gap (FVG) between $0.5188 and $0.5785, as seen on the XRP/USDT daily chart.

XRP/USDT Daily Chart

XRP could also rally towards FVG between $0.5970 and $0.6217 if the asset successfully breaks out of the downtrend.