RLUSD's Surging Supply Puts XRP's Market Timing in Focus

The stablecoin RLUSD has seen its supply grow by over 30% in recent times, while USDT's supply has declined by 0.4%. This significant growth in liquidity is being closely watched as it may have implications for the price of XRP. The data from DeFiLlama shows that RLUSD represents over 90% of all stablecoins on the XRP Ledger and has exceeded $950 million in total supply.

The impact of this divergence is starting to appear in price action, with the XRP/ETH ratio closing last week up over 17%. This surge in liquidity puts XRP's market timing in focus. The technical setup for XRP is also looking positive, with a strong weekly rally that saw the price pierce the $1.50 resistance zone.

From a technical perspective, the increased liquidity on the network could help absorb selling pressure and provide XRP with a stronger foundation to build on. While the bearish opening of the week for XRP/ETH may be too early for a full-fledged trend reversal, if the on-chain liquidity growth of RLUSD persists, XRP could have the liquidity support to reclaim $1.50 and resume its relative strength against ETH.