XRP Price Outlook as RLUSD Becomes First Stablecoin to Earn Moody’s Investment-Grade Rating

Ripple (XRP) price has moved above the psychological resistance at $1.30 as it trades at $1.32 at the time of writing. The price also has a 2.35% intraday gain, which coincides with an investment-grade rating for Ripple’s RLUSD stablecoin by Moody’s.

Meanwhile, the XRP held by whales has reached the highest since 2022, as the majority of the supply now moves towards “strong hands.”

The buying pressure has also risen to a three-month high on Binance, suggesting that retail traders are expecting the XRP value to rebound despite inflows to Ripple ETFs drying up.

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XRP Price Bounces Amid Moody’s RLUSD Rating

The senior vice president for stablecoins at Ripple, Jack McDonald, has noted that Moody’s has assigned an A2 long-term rating to the RLUSD stablecoin and a P-1 short-term rating.

McDonald notes that RLUSD is now the first stablecoin to receive an investment grade rating from Moody’s after the agency assessed Ripple’s redemptions, reserves, custody and regulatory oversight.

This rating is bullish for XRP price because it shows that Ripple is gaining institutional trust and is meeting compliance standards.

The rating also comes shortly after Ripple secured the OCC’s approval to open a national trust bank, further suggesting that XRP is making inroads into the traditional finance sector, which is bullish for price.

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XRP’s Open Interest Jumps as Sentiment Improves

Data from CoinGlass shows that the recovery in XRP price today coincides with a jump in open interest to $3.02 billion suggesting that conviction among traders is improving.

XRP’s OI has added $230 million in value from $2.79 billion on October 24. This is the highest OI reading by XRP since September 12.

When the open interest increases alongside the price like it is doing down, it is bullish for XRP price because it suggests that new buyers are entering the market and creating new positions.

The rising OI also coincides with a positive funding rate that suggests that long buyers are paying short sellers to keep their positions open, which further boosts the bullish outlook ahead of the November 3 US mid-term elections.

On-Chain Data Flips Bullish on Ripple Price

On-chain data also supports a bullish outlook on XRP price. amid the rising open interest and increased interest from institutions.

Recently, Santiment reported that XRP whales that hold more than 10 million XRP coins now hold 46.87 billion tokens. This is the same as 68.5% of the XRP supply and it also marks the biggest supply share since November 2022.

Santiment notes that these holdings suggest that whales are purchasing more XRP coins despite the price weakness. This is now creating a bullish setup if smaller traders step in and also start purchasing.

Data from CryptoQuant shows that the buy-side pressure from retail traders may be coming back because the taker buy/sell ratio for XRP on Binance has risen to 1.076, with this being the highest level in three months.

This rising ratio suggests that the buying pressure for XRP on Binance is at a three month high. A reading above 1 also shows that there are more buy orders than sell orders on the exchange, which is also bullish for XRP price.

XRP Price Confirms Bullish W Pattern as Bulls Target $1.44

XRP price has created a bullish double bottom pattern on the one-day chart. This pattern emerges when the trend is about to change to an uptrend.

The support of the double bottom is at $1.29. XRP price has already bounced from this support and bulls are now targeting the resistance at the neckline of $1.36. Breaking that resistance might push XRP price to $1.14.

The AO bars are green despite their negative. This setup suggests that the bearish momentum is becoming weak as XRP approaches the resistance at $1.36.

However, the RSI line remains below 50, which shows that the momentum has yet to confirm a reversal to the bullish side.

The volume histogram bars confirm that the drop below $1.30 attracted dip buyers. If they can sustain their dominance over sellers, it further strengthens the case that XRP price might reach $1.44, especially with the growing institutional appeal.