Inflows of XRP to cryptocurrency exchanges have increased significantly. This coincides with the global launch of Ripple's new stablecoin RLUSD.
This surge suggests that some XRP holders are taking advantage of the market's high interest to sell their tokens for potential gains. This puts the altcoin at risk of short-term downside.
Ripple's RLUSD triggers token selling
According to the approval last week by the New York Department of Financial Services (NYDFS), Ripple's RLUSD stablecoin will launch global trading on Tuesday.
The US dollar-pegged stablecoin will be listed on Uphold, Moonpay, Archex, and Coinmena. Other exchanges such as Bitso, Bullish, Bitstamp, Mercado Bitcoin, Independent Reserve, and Zero Hash are also expected to list RLUSD in the near future.
The price of XRP has risen almost 10% since the news broke. However, this upward momentum has prompted some investors to sell their tokens, which is reflected in the increased inflows to exchanges. According to CoinGlass, XRP inflows to cryptocurrency exchanges reached $28 million today.
A surge in exchange inflows of an asset means that a large amount of cryptocurrency is being deposited on exchanges. This indicates an increase in selling activity and can put downward pressure on prices in the market.
Additionally, XRP's Moving Average Convergence Divergence (MACD) supports this bearish outlook. At the time of reporting, the token's MACD line (blue) is below the signal line (orange), indicating increasing downward pressure.
The MACD indicator measures changes in an asset's price trend, direction, and momentum. When the MACD line is below the signal line, it signals a downtrend and suggests that the price is in a downward trend or a potential sell signal is forming.
XRP Price Prediction: Token Price Could Drop 10%
XRP has risen 7% in the last 24 hours, but due to increased selling and strengthening downward pressure, it is at risk of losing its gains in the short term. If this situation occurs, the token's price could fall to $2.31, a 10% drop from its current market value.
On the other hand, the launch of the RLUSD token could trigger a change in market trends, and if selling pressure decreases, XRP could target a multi-year high of $2.90.
