Why is XRP price up today?

1 week ago 3

XRP (XRP) price is up today, rising by nearly 6% over the last 24 hours to reclaim the $2.30 level amid investor excitement over the approval of Ripple’s RLUSD stablecoin.

Cryptocurrencies, Ripple, SEC, XRP, Markets

Let’s take a closer look at the factors behind XRP’s momentum today.

XRP price boosted by RLUSD stablecoin approval

Data from Cointelegraph Markets Pro and TradingView shows that XRP rose from a low of $1.90, rising as much as 27% to a high of $2.42 on Dec. 10, before retreating to the current level of $2.32.

XRP’s rally follows a Dec. 10 announcement by Ripple CEO Brad Garlinghouse that Ripple’s US dollar-backed stablecoin, RLUSD, has received final regulatory approval from the New York Department of Financial Services (NYDFS).

This marks a major achievement for Ripple as the approval paves the way for RLUSD to go live on exchanges and partner platforms, signaling Ripple’s expansion into the stablecoin market, currently dominated by Tether (USDT) and Circle (USDC).

In April, Ripple laid out its plan to enter the quickly growing stablecoin market with its heavily regulated, short-term US government bond-backed cryptocurrency.

RLUSD is currently in beta testing on the Ethereum network and XRP Ledger (XRPL), with a circulating supply of $52 million.

Some crypto commentators have said that RLUSD’s launch will create several tailwinds for XRP, especially as it will provide Ripple with a less volatile asset to deepen its remittance and settlement services.

Popular analyst Ashy Crypto said that if RLUSD receives wide adoption, it will “send XRP hard” upward.

Will RLUSD send XRP to all-time highs?

Crypto expert Vincent Van Code provides a breakdown of how RLUSD will eventually impact the price of XRP.

Van Code pointed out that while RLUSD’s approval is responsible for XRP’s recent jump from $1.90 to $2.32 (at the time of publication), it’s “purely a speculative pump” and not one driven by fundamentals.

“The real pump will happen when the AMM/LP are set up, and people realize they can earn 5% APY onchain with zero counterparty risk,” he said, adding that this could attract serious funds to the XRPL, with exchanges getting in on the action by offering RLUSD staking.

“So what this will do is raise the demand for XRP and order of magnitude, as on exchange asks dwindle down. ”

XRP’s giant bull flag targets $15

From a technical perspective, the XRP’s price action has led to the formation of a bull flag pattern in the daily timeframe, as shown below.

A bull flag is a bullish continuation setup that forms after the price consolidates inside a down-sloping range following a sharp price ascent.

The pattern will resolve after the price breaks above the upper trendline of the flag at $2.58 and rises by as much as the previous uptrend’s height. This puts the upper target for XRP price at $15, marking new all-time highs for the fourth-placed cryptocurrency.

XRP’s daily relative strength index is still in the positive region at 62. This suggests there is still more room for the upside for XRP before the market gets overheated.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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