XRP Steadies as Holders Can Now Borrow from Ripple Stablecoin
XRP price is hovering at $1.07 on Wednesday, underperforming a slightly positive broader market, primarily driven by a technical breakdown at a key support level and a positioning reset in derivatives.
Its market condition reflects a technical structure weakness and low conviction, with price pinned below moving averages and hovering near the critical $1.06 support.
XRP is trading below its key moving averages at $1.12 with an RSI of 44.35 indicating bearish momentum. The price is consolidating just above the pivotal $1.06 support level.
Trading volume fell 5.57% to $994.3 million, signalling a lack of conviction from both buyers and sellers. The market structure is weak, and without a surge in buying pressure, the risk of breaking support increases.
A daily close below $1.06, which could trigger stop-losses and accelerate selling. Despite positive Ripple news—including strategic investments in ZILO and Licuido and four consecutive days of U.S. spot ETF inflows—the price failed to rally.
Broader market sentiment is favouring Bitcoin over altcoins, overshadowing coin-specific positive developments. A shift in the Altcoin Season Index above 75 signals renewed risk-on appetite for alts.
The immediate battle is at $1.06. Holding this support, coupled with a potential positive catalyst like the CLARITY Act vote, could fuel a rebound toward resistance at $1.10–$1.12.
However, derivatives data shows open interest near a six-month low of $2.25 billion and extremely low liquidations of $243K in 24h, indicating a market reset with little speculative fuel for a sharp move either way.
The market is in a wait-and-see mode, with a slight bearish tilt due to the weak technical structure. A spike in volume on a move above $1.10 or below $1.05 to confirm the next directional trend.
The price decline reflects a lack of bullish catalysts to overcome weak technicals and negative sector rotation. In a latest development, XRP holders can now borrow Ripple’s $RLUSD stablecoin against their holdings on Ethereum without selling their tokens after Flare’s FXRP was approved as collateral in Sentora’s $RLUSD Main vault.
Announced on Monday by layer 1 blockchain developer Flare, the integration lets users convert $XRP into Flare’s FXRP token, bridge it to Ethereum, deposit it as collateral on the Morpho lending protocol, and borrow $RLUSD. Because the loan is backed by collateral rather than a sale, borrowers retain exposure to $XRP’s price while accessing dollar-pegged liquidity.
“$XRP is one of the largest assets in crypto and one of the least used in DeFi. That gap came down to infrastructure,” co-founder and CEO of Flare, Hugo Philion, said in a statement.
“$XRP is now collateral that an institutional risk team underwrites on Ethereum mainnet, which is a stronger form of recognition than another bridge listing.”
The model is similar to Wrapped Bitcoin (WBTC), which lets Bitcoin holders use their BTC in Ethereum-based decentralised finance without selling it.
FXRP is designed to do the same for $XRP, giving holders access to Ethereum lending markets. The lending market runs on Morpho Blue, which uses isolated lending markets designed to contain risk if problems arise with a specific asset.
Sentora said it reviewed FXRP’s market behaviour, oracle design, liquidity, and liquidation mechanics before approving it as collateral.
The launch builds on Ripple’s effort to establish $RLUSD as an enterprise-focused stablecoin. In August 2024, Ripple began testing $RLUSD on Ethereum and the $XRP Ledger for cross-border payments.
In December 2024, the company received approval from the New York Department of Financial Services ahead of the stablecoin’s launch. Last month, Mastercard said it will support settlement of regulated stablecoins including $RLUSD, Circle’s USDC, and SoFi’s SoFiUSD.
“[Sentora] just took a major step to make $XRP useful onchain,” Co-Founder, CTO-CPO of Sentora, Jesus Rodriguez wrote on X. “$XRP is one of crypto’s largest and most liquid assets. Yet it remains surprisingly underused in onchain credit. That changes today.” Zcash Gains 5% as Fortitude Mining Holdings Acquires Facility