Originally published on: December 16, 2024
XRP has hit the brakes following an impressive six-week rally, with profit-booking slowing down its push towards the $3.00 mark.
The corrective trend for the XRP/USD pair saw a 2% drop to $2.3 on December 16 after reaching a peak of $2.90 on December 3. Despite this correction, XRP’s value has surged by nearly 18% over the past six weeks after tripling in value.
XRP has been gaining attention not just for its recent performance but also due to significant developments within the XRP Ledger (XRPL) ecosystem, including the upcoming RLUSD stablecoin launch.
Set to be pegged 1:1 to the US dollar, RLUSD is set to debut on the XRPL and Ethereum blockchains, backed by cash reserves and US treasury bills. This stablecoin will require XRP for transaction fees, driving potential adoption and utility for the token.
With approval from the New York Department of Financial Services, RLUSD could see widespread use for transactions and savings, especially in emerging markets. This development is expected to boost XRP’s adoption as a payment token in the coming years.
Ripple’s CTO, David Schwartz, has cautioned about supply constraints and price volatility for RLUSD post-launch, noting that early bids may not reflect the stablecoin’s actual value.
Despite these concerns, XRP-tracked futures have seen a surge in open interest, indicating growing market sentiment and anticipation of future price movements. This bodes well for XRP’s bullish momentum, with technical analysis pointing to a classic “bull flag” pattern.
The bull flag pattern typically suggests a consolidation phase following a strong upward trend, signaling a potential breakout to higher price levels. XRP’s chart is hinting at a $15 target, representing a significant upside potential from the current price.
Investors should note that this article does not provide investment advice and decisions should be made based on individual research and analysis. Stay informed about market trends and investment opportunities by subscribing to our newsletter for weekly insights and updates. Join us in exploring the evolving landscape of the cryptocurrency market.