XRP inflows into crypto exchanges have increased, coinciding with the expected global launch of Ripple’s new stablecoin, RLUSD.
This surge mainly suggests that some XRP holders are taking advantage of the market excitement by selling tokens to gain potential profits. This puts the altcoin at risk of a short-term decline.
Ripple’s RLUSD sparks token sales
Following the New York Department of Financial Services (NYDFS), Ripple’s RLUSD stablecoin officially hit the market this Tuesday (17).
Backed by the US dollar, the stablecoin has been launched on Uphold, MoonPay, Archax, Mercado Bitcoin and CoinMENA. Other exchanges, such as Bitso, Bullish, Bitstamp, Independent Reserve and Zero Hash, are expected to list RLUSD soon.
As such, the price of XRP has risen by nearly 10% since the news broke. However, this upward trend has led some investors to sell their tokens, as reflected by the increasing inflows to exchanges. According to Coinglass, XRP inflows to cryptocurrency exchanges totaled $28 million today (17).
XRP Spot Inflow/Outflow. Fonte: Coinglass
When inflows of a crypto to exchanges increase, it means that a significant amount is being deposited, usually indicating an increase in selling activity. This signals that traders are preparing to sell holdings, potentially leading to downward pressure on market prices.
Furthermore, XRP’s Moving Average Convergence Divergence (MACD) supports this bearish outlook. At press time, the token’s MACD line (blue) is below the signal line (orange), indicating increasing selling pressure.
The MACD indicator measures changes in an asset's price trends, direction, and momentum. When the MACD line is below the signal line, it indicates a downtrend, suggesting that the price may be in a downward trend or that a potential sell signal is forming.
XRP MACD. Fonte: TradingView
XRP Price Prediction: Token Could Lose 10%
While XRP has surged 7% in hours, the growing selloff and strengthening bearish pressure puts these gains at risk in the short term. Should this occur, the token’s price could fall to $2.31, down 10% from its current market value.
XRP Price Analysis. Source: TradingView
On the other hand, if the launch of the RLUSD token triggers a change in market trends and the sell-off subsides, XRP may attempt to reach its multi-year high of $2.90.
The article XRP inflows to exchanges exceed US$25 million with the launch of RLUSD was seen for the first time on BeInCrypto Brasil.
