Ripple’s stablecoin, RLUSD, will be under the purview of the Bank of New York Mellon (BNY Mellon) after yesterday’s announcement. In the wake of rising interest among traditional institutions for stablecoin, which the market terms as ‘stablecoin summer’, Ripple stated it has partnered with BNY Mellon, a global financial company in investment management. As such, the BNY of Mellon will be the primary reserves custodian for $RLUSD.
Reporting to a prominent media outlet, Emily Portney, global head of asset servicing at BNY, said in a statement: “BNY is committed to delivering differentiated, end-to-end solutions, designed to meet the needs of institutions across the entire digital assets ecosystem.
As primary custodian, we are thrilled to support the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash to support conversions, and are proud to be working closely with Ripple to continue propelling the future of the financial system.”
The XRP prices appreciated from $2.31 to $2.42 following this announcement. The trading volume is up by 78% during the last 24 hours, reaching $5.28 billion.
Overbought conditions appear as XRP reaches $2.4. Is the uptrend over?
Since late June, XRP has been trading inside the bullish channel, at times breaking above the upper trendline. When a bullish channel occurs, it shows that the market has reached an equilibrium point where buyers push the price to its threshold, and sellers take profits at the top. However, the overall uptrend remains intact.
At the time of publication, the token has once again broken above the upper trend line, but this time around, it does not seem to be just an excitement, but the start of a new trend. When the token breaks above the upper trendline, it shows strong bullish activity.
With the prices breaking above the upper trendline, the Bollinger bands indicate that the market is overbought and there could be a retracement. If XRP goes through a correction, then it may seek support from the upper trendline close to $2.39.
Buyers on a roll
However, the bulls show no sign of waning, as the Bull Bear Power indicator is making huge green bars on its positive side of its scale. This shows that there are still a lot of buyers present in the market. If the buyers manage to keep this momentum, XRP may hold its uptrend after the correction and reach $2.5.
