XRP Price Eyes a Rebound as Stablecoin Supply on XRP Ledger Crosses $400M Milestone

Source: CryptoNewsNet Original Title: XRP price eyes a rebound as a key stablecoin metric crosses $400m milestone Original Link:

XRP Price Reversal and Market Dynamics

XRP price suffered a significant reversal and dropped for four consecutive days as the recent crypto market rally lost momentum. The token retreated to $2.09 on Friday, January 9, marking a decline of nearly 15% from its highest point this year.

XRP Ledger Stablecoin Growth Accelerating

Despite the price pullback, technical indicators and ecosystem growth suggest the token may be on the verge of a strong rebound in the near term.

Data shows that the supply of stablecoins in XRP Ledger has continued rising significantly. Stablecoin supply jumped by 33% in the last seven days to over $406 million, substantially higher than the $93 million recorded in the same period last year.

This growth has been driven by Ripple USD (RLUSD), whose supply surged by 42% in the last 30 days to $332 million. Other major stablecoins in the ecosystem include OpenEden Tbill, USD Coin, and EURQ.

Ripple USD, launched in December 2024, has grown into one of the largest stablecoins with a total supply of $1.4 billion. Most of the supply is concentrated on Ethereum, which remains the most popular chain for stablecoin transactions. The supply is expected to increase as Ripple extends it to other layer-2 networks such as Base and Optimism.

XRP is also attracting demand from American investors, with ETF inflows reaching over $8.7 million on Thursday. Total inflows in XRP ETFs have jumped to $1.21 billion, while net assets moved to $1.49 billion.

Technical Analysis

The daily timeframe chart shows that XRP price has retreated from a high of $2.4153 on January 6. However, several bullish signals suggest potential for recovery:

• The token remains above the 50-day Exponential Moving Average, a bullish indicator
• XRP is still trading above the Supertrend indicator
• The coin is positioned above the upper side of a falling wedge pattern, a common bullish reversal signal

Based on these technical factors, XRP is likely to rebound and initially retest the year-to-date high of $2.4153, approximately 15% above current levels. A move above that resistance level could point to further gains, potentially reaching the psychological level of $3, which represents approximately 42% upside from current price levels.