Cardano Founder Hoskinson Confirms XRP RLUSD Integration – How Will ADA Price React?

Cardano to Integrate Ripple’s RLUSD

Cardano founder Charles Hoskinson has confirmed discussions with Ripple regarding the integration of Ripple’s RLUSD stablecoin onto the Cardano blockchain. This collaboration aims to enhance Cardano’s decentralized finance (DeFi) ecosystem by leveraging RLUSD’s liquidity and stability.

The integration is expected to provide Cardano users with a reliable stablecoin option, facilitating smoother transactions and broader DeFi participation. This development underscores a growing trend of interoperability and collaboration among blockchain platforms to foster innovation and user adoption.

ADA Price Analysis

On the daily chart, ADA displays a completed five-wave impulsive move to $1.317, marking the peak of Wave 3. This rally followed a correction that saw the price retrace to the $0.76 at its lowest point on Dec. 20 but quickly spiked above $0.86 and stayed above it until Jan 1.

The descending channel was most likely Wave 4 of the higher degree count, in particular as we saw an impulsive rise after a breakout. The correction developed an ABC pattern, with the price consolidating after Wave C, establishing a strong support zone above $0.86.

ADA recently broke above a descending structure but is struggling to surpass horizontal resistance around $1. A sustained breakout above this level could confirm a bullish reversal. Conversely, if the rejection momentum continues, it might lead to retests of deeper retracement levels, including $0.825 (0.5 Fibonacci) or $0.708 (0.618 Fibonacci).

The RSI remains neutral, oscillating between 40 and 50, indicating consolidation. A bullish divergence forming on recent lows suggests the possibility of a stronger upward move if momentum builds.

ADA Price Prediction

The 1-hour chart shows a clear corrective ABC pattern following a five-wave impulsive structure to a high of $1.15 on Jan 7. The price recently fell slightly below the 0.382 Fibonacci retracement level to a low of $0.875, forming a potential Wave A low. ADA is currently trading near $0.977 and approaching resistance at $1.011 which might imply that its corrective stage after the impulse wave ended.

Should ADA break above $1.011, the next target lies at $1.085, coinciding with the 0.236 Fibonacci retracement on the higher time frame. A further bullish move could push the price toward $1.13, completing the retracement to the top of the previous impulsive Wave 3.

However, failure to sustain above $1.011 may lead to a retest of $0.941 or even $0.825, aligning with the 0.5 Fibonacci level. RSI on the lower time frame supports this outlook, showing mild bullish momentum but not yet in overbought territory.

In the medium term, ADA may embark on a new impulsive structure targeting $1.4 (the 1.618 Fibonacci extension of the prior impulse), provided the $1.13 resistance is decisively broken.

In short, there are two scenarios ahead, depending on how the price of ADA reacts around $1. Failure to surpass it could mean ADA is in a larger correction with more downside to come, but a breakout will confirm the start of a new bull phase.

Key Levels to Watch

• Short-Term Resistance: $1.011 (local resistance).
• Immediate Support: $0.941 (Wave C low).
• Bullish Target: $1.13 (key zone to confirm bullish momentum).
• Invalidation Zone: Below $0.825 (signaling further downside potential).

Conclusion

ADA’s price action showcases a balanced interplay between retracements and potential breakouts. The daily chart suggests a transitional phase as the correction nears completion, while the 1-hour chart hints at short-term bullish momentum.

The integration of Ripple’s RLUSD stablecoin into Cardano’s ecosystem could enhance DeFi utility, attract liquidity, and provide users with a stable transaction option, potentially driving ADA adoption and price growth.

The key to confirming a bullish continuation lies in ADA’s ability to break above $1.085 and $1.13, targeting the $1.4 zone. However, traders should monitor RSI levels and volume for validation. A drop below $0.825 would invalidate the bullish outlook, signaling deeper retracements.