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The digital currency ecosystem has slipped back into its bearish state once again with XRP being one of the most impacted. At the time of writing, XRP is changing hands for $0.5149, down by 2.12% in the past 24 hours, per CoinMarketCap data. The price shifted from the 24-hour high of $0.5294 and traded as low as $0.5104 before rebounding to its current level.
As seen in the price trends, brighter days might be ahead for XRP. Though there are still some unique headwinds impacting the price boom, the digital currency might have hit its floor price. Overall, XRP is on track for a big bullish rebound as some key catalysts align within its ecosystem.
For XRP, it has a relatively underperforming price trend, with entities like Forbes calling out its downtrend. As such, utility remains a key catalyst that can reshape sentiment. Notably, the visible embrace by XRP whales is one key trend that can recertify the coin as one that top investors are favoring. Whale transactions, especially if directed toward buy-ups, have a way of reigniting market-wide confidence.
The escrow impact by Ripple Labs also needs to be closely watched alongside the embrace of the coin by top institutional investors.
Ripple’s pivotal role
The close association of Ripple Labs with XRP is capable of making or marring XRP’s growth. The blockchain payments firm has unveiled its plans to launch its stablecoin, one that will compete with the dominant options in the industry like Tether (USDT) and USD Coin (USDC).
While the operational modalities of the Ripple stablecoin have not been revealed, if XRP is made to feature in the minting and redemption, business can introduce a unique utility that will increase the demand for the coin in the long term.
Many analysts are also generally bullish on XRP with different projections on its price target. In the near term, XRP’s immediate target lies at the $0.6 price market.