XRP Eyes Recovery to $1.55 as RLUSD Market Cap Grows by 50%

XRP (XRP) remains the best-performing asset in the top 5 with a 36% gain, as the crypto market keeps struggling to reignite its latest rally amid ongoing macroeconomic woes.

This week, inflation data in the United States stood near the market’s projections for August, with a 3.4% 12-month increase.

Even though month-on-month inflation surpassed analysts’ estimates by 20 basis points, the market reacted with a strong rally shortly after the report was released.

This was a counterintuitive move, considering that the odds of a rate hike in September surged to 87%. Multiple tokens broke above key resistances, but failed to hold on to those gains later in the session.

This turned out to be a “fakeout” and bulls seem to have been trapped as a result. Even though the late-August rally is still intact, this shows the significant volatility that thecrypto market is still subject to as a group of investors in still not convinced that the previous bearish cycle is over.

RLUSD Market Cap Surges Following Ripple Prime’s Funding Round

According to data from SoSoValue, exchange-traded funds (ETFs) linked to XRP have brought in just $32 million so far this month.

Using the current daily average to project total monthly inflows, we expect that investors could pour nearly $90 million into these vehicles if the price action continues to be bullish.

This would imply a 62% drop compared to last month’s inflows, but would still result in higher levels compared to June and July.

One of the things we like about the August rally is that adoption of the network’s native stablecoin, Ripple USD (RLUSD), has skyrocketed since then.

The market cap of this token surged from $1.6 billion to $2.4 billion in just a month, indicating stronger usage.

Ripple has been focusing on growing its prime brokerage business lately. Last month, they secured $290 million to expand this unit’s operations. This could have been one of the factors driving higher volumes toward RLUSD.

As the project continues to advance in its vision of becoming the global go-to blockchain for cross-border payments, increased adoption of RLUSD could be the canary in the coal mine, anticipating higher network usage and increased demand for the XRP token.

XRP Eyes Recovery After Bouncing Off $1.32

Turning to the daily chart, a bull flag pattern has formed following the late-August rally, indicating that the market has entered a phase of consolidation.

Yesterday’s strong spike did not manage to break this formation, as the selling pressure persists at around $1.40. However, the token did bounce off the $1.32 area and seems ready to start recovering.

Source: finance.yahoo.com