Ripple’s native token has recently been one of the poorest performers in the cryptocurrency market, despite the conclusion of the lawsuit against the SEC. This situation calls for an analysis of the latest developments within the Ripple ecosystem.
Record-Setting Minting of RLUSD
Ripple’s native stablecoin, RLUSD, launched in mid-December after an extensive development period amidst regulatory battles in the U.S. While it currently ranks as the 12th-largest stablecoin in the crypto market with a circulating supply of just over 240 million tokens, it has been relatively slow to catch up with its competitors. However, the asset witnessed a significant positive shift recently, as 50 million RLUSD were minted from the project’s treasury, setting a new record for the largest minting in its three-and-a-half-month history.
50,000,000 #RLUSD minted at RLUSD Treasury.https://t.co/hf8GfYG3cy
— Ripple Stablecoin Tracker (@RL_Tracker) March 31, 2025
The Truth About XRP ETF Hopes
In the lead-up to significant regulatory changes in the U.S. and the resolution of the lawsuit with the SEC, several companies had filed applications to launch exchange-traded funds (ETFs) that track XRP’s performance. With the lawsuit closed and regulatory clarity gained, these applications have spurred increased speculation about the potential approval of XRP ETFs entering U.S. markets. Recent analysis on this topic indicates that while the approval of such financial products could generate hype and provide a temporary price boost for XRP, the long-term impact remains unpredictable. A comparison with Bitcoin, which led the way for ETFs in the U.S., reveals a complex landscape; Ethereum’s performance subsequent to its ETF approvals serves as a pertinent example.
XRP Price Decline Amid Worrisome Predictions
Initially, following the announcement from Ripple’s CEO Brad Garlinghouse on March 19 regarding the lawsuit’s conclusion, XRP’s price rallied from $2.3 to $2.6. However, this uptick proved short-lived, resulting in what many termed a classic ‘sell-the-news’ reaction. Within a week, XRP’s price had plummeted by 20%, making it the worst-performing asset among the top 20 cryptocurrencies. Analysts noted that XRP struggled to stay above the $2 mark, with concerns rising that a break below this support level could precipitate a plunge to $1.2. Veteran traders have pointed to the formation of a typical head-and-shoulders pattern in the price charts, which could signal further downside potential if support levels are breached.
Conversely, some market analysts maintain a more optimistic outlook for XRP, suggesting that it might bounce back from the current support at $2 and surge towards $2.8. Others believe that the asset may have found a bottom during its recent drop to $1.8, potentially positioning it for a recovery in the coming cycles.
As Ripple continues to navigate its evolving landscape, investors remain vigilant for the latest developments and expert predictions regarding XRP’s trajectory.
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