XRP price looks poised for a rebound as a crucial stablecoin indicator on the XRP Ledger surges past the $400 million mark, signaling growing on-chain activity and potentially renewed investor confidence.
After a sharp pullback, XRP is trading notably below its recent highs. Ripple’s native token fell for four consecutive sessions as the broader crypto rally cooled, with the price sliding to around $2.09 on Friday, January 9. From its peak of $2.4153 earlier in the week, that represents a drawdown of nearly 15% in just a few days.
Despite this correction, several structural and technical factors suggest XRP may be setting up for another leg higher rather than entering a deeper downtrend. The rapid expansion of stablecoin supply on the XRP Ledger is one of the clearest signals that underlying network usage is strengthening, even as price consolidates.
According to on-chain analytics, the combined stablecoin supply on the XRP Ledger has climbed to more than $406 million, marking a 33% increase over the last seven days alone. That figure is dramatically higher than the roughly $93 million recorded during the same period a year ago, underscoring how quickly the ecosystem is maturing.
This expansion is being driven primarily by Ripple USD (RLUSD), Ripple’s own U.S. dollar–pegged stablecoin. RLUSD’s circulating supply on XRP Ledger has jumped about 42% over the past 30 days to reach approximately $332 million. Other notable stablecoins in the XRP ecosystem include OpenEden Tbill, USD Coin (USDC), and the euro‑denominated EURQ, but RLUSD has clearly emerged as the dominant force behind the latest growth spurt.
Stablecoins, which are typically pegged to fiat currencies such as the U.S. dollar and backed by reserves, have become foundational infrastructure for the digital asset economy. They serve as a bridge between traditional finance and crypto, powering payments, remittances, trading, and on-chain settlement. Across the broader market, more than $308 billion worth of stablecoins are currently in circulation, a figure that continues to expand as institutional and retail adoption accelerates.
Against that backdrop, RLUSD has quickly carved out a place among the larger stablecoins globally since its launch in December 2024. Its total supply now stands at around $1.4 billion. Most of this supply currently resides on the Ethereum network, which remains the primary chain for stablecoin activity and DeFi applications. However, Ripple has signaled clear ambitions to broaden RLUSD’s footprint by bringing it to additional layer‑2 networks like Base and Optimism. As RLUSD becomes available across more chains, it is expected to unlock further liquidity and deepen its integration into both trading and payments use cases.
The surge in RLUSD supply on XRP Ledger is particularly significant for XRP itself. A growing base of dollar‑denominated liquidity on‑chain often translates into smoother trading conditions, tighter spreads, and greater appeal for institutional users who require stable, fiat‑linked rails for settlement. This can support XRP’s role as a bridge asset for cross‑border transactions and inter‑ledger transfers, thereby indirectly reinforcing demand for the token.
At the same time, there are signs that demand for XRP is holding up among U.S. investors despite recent volatility. Exchange‑traded products (ETPs and ETFs) tied to XRP saw net inflows of roughly $8.7 million on Thursday, following a day of significant outflows of about $40 million. While flows remain choppy, the broader picture is constructive: cumulative inflows into XRP‑based ETFs have reached approximately $1.21 billion, with net assets now around $1.49 billion. Those figures suggest that a meaningful cohort of investors continues to view XRP as a relevant part of their crypto exposure.
On the technical front, XRP’s price structure remains more constructive than the raw pullback might suggest. On the daily chart, the token has declined from its year‑to‑date high of $2.4153 on January 6 to around $2.09 by the end of the week. However, XRP is still trading above the 50‑day Exponential Moving Average (EMA) — a widely watched trend indicator. Price holding above this dynamic support zone is often interpreted as a sign that the medium‑term uptrend is intact, with recent weakness reflecting a correction rather than a full trend reversal.
XRP is also trading above the Supertrend indicator, another tool that helps distinguish bullish from bearish regimes. When price remains above the Supertrend line, the prevailing momentum is typically considered positive. For many traders, this combination — price above both the 50‑day EMA and the Supertrend — keeps the bias tilted to the upside, at least until these supports are decisively broken.
Equally important is the chart pattern that has been forming in recent weeks. XRP has broken out above the upper boundary of a falling wedge formation. Falling wedges, which are characterized by converging downward‑sloping trendlines, frequently precede bullish reversals when broken to the upside. The current price action suggests that XRP has already completed that breakout and is now retesting lower levels, a common behavior before a more sustained move higher.
If buying pressure resumes from current levels, the first logical upside target is a retest of the recent high around $2.4153. That would represent a gain of roughly 15% from the $2.09 zone and would confirm that bulls remain in control of the broader structure. A clean break above that resistance would open the door to the next major psychological level near $3 — about 42% above current prices — which many market participants will be watching closely.
For traders and investors, the convergence of these factors — expanding stablecoin liquidity on the XRP Ledger, growing RLUSD adoption, resilient ETF inflows, and supportive technicals — creates a narrative in which the recent drawdown could be seen as an opportunity rather than an exit signal. However, it is important to acknowledge that crypto markets remain highly volatile, and even strong on‑chain metrics do not guarantee a straight-line recovery.
A key point to monitor going forward is whether stablecoin growth on XRP Ledger continues at the current pace or begins to plateau. Sustained increases in RLUSD and other stablecoin supplies would indicate ongoing demand for the network’s settlement capabilities. If that demand is paired with rising transaction volumes and deeper integration into payment and trading platforms, it could gradually strengthen the fundamental case for XRP as a core infrastructure asset rather than a purely speculative token.
Investors should also keep an eye on macro factors and regulatory developments that could influence both stablecoin usage and XRP’s status in major jurisdictions. Any shift in rules around dollar‑pegged tokens, cross‑border payments, or crypto‑backed ETFs can quickly reshape liquidity flows and investor appetite. So far, the steady expansion of RLUSD and other regulated stablecoins suggests that the market is adapting to these evolving frameworks rather than being constrained by them.
Another dimension worth watching is how effectively Ripple can execute its multichain strategy for RLUSD. Bringing the stablecoin to layer‑2 networks like Base and Optimism has the potential to significantly reduce transaction costs and improve throughput, making RLUSD more attractive for everyday payments, microtransactions, and high‑frequency trading. If the liquidity on these chains can be seamlessly connected back to XRP Ledger, the resulting network effects may further embed XRP and RLUSD into institutional payment and liquidity workflows.
In the near term, traders focusing on XRP’s price trajectory will likely base their decisions on a combination of technical levels and liquidity conditions. The 50‑day EMA and the recent low around $2 form a critical support zone; a breakdown below this area could delay or invalidate the immediate bullish thesis and open up room for a deeper correction. On the other hand, strong buying interest in this region, especially if accompanied by continued growth in stablecoin supply and positive ETF flows, would strengthen the case for a move back toward and ultimately above the $2.4153 high.
Longer term, the real story may not be the short‑term swings in XRP’s price, but the steady transformation of the XRP Ledger into a more robust, stablecoin‑rich payments and settlement layer. As RLUSD and other tokens anchor more dollar liquidity on the network, and as institutional products tied to XRP continue to attract capital, the token’s role could evolve from speculative asset toward a core component of digital finance infrastructure. In that context, the current rebound setup is less an isolated event and more a reflection of deeper structural shifts that are gradually reshaping how value moves on-chain.