Ripple announced a partnership with Chainlink to enable broad adoption of Ripple USD (RLUSD) stablecoin.
The main goal of this collaboration is for Chainlink to harness its Price Feeds on Ethereum to deliver secure, accurate pricing data for RLUSD, Ripple’s enterprise-grade USD-pegged stablecoin.
Designed for trust, utility, and compliance, RLUSD provides a stable, 1:1 value to the US dollar.
In collaboration with Chainlink, Ripple grants RLUSD the ability to fulfil the increasing requirement of decentralized finance (DeFi).
Jack McDonald, Senior Vice President of Stablecoins at Ripple says that there are growing number of contracts that make use of DeFi in RLUSD’s ecosystems.
This necessitates reliable and transparent pricing to ensure proper price discovery to safeguard DeFi against volatility and to build trust in the usefulness of its decentralized ecosystem.
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Chainlink Labs’ Chief Business Officer, Johann Eid, also said the adoption of tokenized assets like stablecoins will continue to accelerate from here.
Additionally, he says this process will be sped up by having access to critical on-chain data. By providing accurate price data that enables risk management for decentralized applications, RLUSD will become part of DeFi via Chainlink’s Price Feeds.
FOX Business Fuels Speculation Around XRP and Bank of America Partnership
FOX Business has been teasing speculation about Ripple partnering with Bank of America.
Analysts highlighted Ripple’s blockchain technology as potential for transforming everything, stating that Ripple is going to be the track that everything is running on in the future.
The Bank of America has reportedly used blockchain for internal transactions and has reportedly obtained more than 83 patents related to blockchain technology.
This shows the bank’s strategic direction to leverage blockchain solutions into its operations. This brings a sense of Ripple’s possibility of being part of such advancements.
The FOX analysts report that while there hasn’t been any official announcement yet if the rumours were true, it’d be very good for XRP adoption, especially in the traditional banking world.
Such a collaboration is expected to cement Ripple’s dominance as a blockchain payment solutions leader, as per the analysts.
XRP Market Analysis: Technical Outlook and Recent Trends
Despite recent positive news proving to be something positive to digest, XRP has been plagued with short-term market challenges.
XRP traded at $2.30 on January 8, down 5.05% over the past 24 hours. The 24-hour trading volume also soared 111.99% to $8.45 billion, while its market capitalization was fixed at $132.39 billion.
The reason for the increase in volume is because of higher activity, perhaps due to speculation relating to Ripple’s partnerships and advancements.
On the technical side, the 4-hour XRP / USDT chart shows no progress with breaking upwards from key support levels.
The 50-period and the 100-period exponential moving average are at $2.34 and $2.30 respectively. They are short-term barriers to further price appreciation.
Meanwhile, the Volume Oscillator is showing moderate bearish momentum as XRP teeters around the negative zone.
This means that XRP volumes are going down possibly implying diminishing interest. On the downside, a failure to print above $2.29 could confirm more declines towards $2.20.
On the other hand, the breakout above $2.34 could stay bullish and such a case could lead to a retest of $2.40 and higher.
