The notable six-week price increase of XRP to nearly $3 has paused, with the cryptocurrency currently in a stabilization phase. However, technical patterns suggest that the bullish momentum is not over yet, potentially driving XRP towards the $15 level.
The pair $XRP /USD has dropped 18%, down to $2.30 on December 16, after reaching a six-week high of $2.90 on December 3. Despite the correction, this adjustment may be part of a healthy stabilization phase before a new bullish rally.
RLUSD Stablecoin Sparks Optimism
One of the key factors driving the XRP rally is the increasing anticipation surrounding the launch of RLUSD, a stablecoin pegged 1:1 to the US dollar. RLUSD will be integrated into both the XRP Ledger (XRPL) and Ethereum, backed by cash and US Treasury bonds.
Importantly, RLUSD will require XRP for transaction fees, boosting utility and acceptance in the XRPL ecosystem. After receiving approval from the New York Department of Financial Services, RLUSD is poised to become a widely accepted payment tool, especially in emerging markets.
Georgios Vlachos, co-founder of Axelar, predicts that RLUSD will enhance the use of XRP as a global payment token by 2025. Axelar's platform also connects XRPL with 69 blockchains, ensuring broad interoperability.
However, Ripple's CTO, David Schwartz, has warned investors about short-term supply constraints and price volatility upon launch. He emphasized that pre-launch fees for the RLUSD token could reflect speculative interest rather than actual market value. Schwartz predicts that the stablecoin's price will stabilize at $1 as supply and demand normalize.
The rise in open interest signals continued momentum
Investor enthusiasm for XRP remains strong, reflected in the increase in open interest (OI) for XRP futures contracts, reaching a record high on December 3. Higher open interest indicates that new capital is flowing into the market, a sign of growing confidence among traders.
The combination of regulatory optimism, excitement about RLUSD, and market positioning has reinforced the bullish narrative for XRP.
Bullish flag pattern indicates a move towards $15
Technically, XRP's current price action depicts a classic bullish flag pattern—a continuation bullish pattern. This structure occurs when an asset stabilizes within a descending channel (the flag) after a significant price increase (the flagpole). A breakout above the upper boundary of the flag often signals the continuation of the upward trend.
For XRP, the height of the previous flagpole indicates a bullish target of $15—increasing 520% from the current level.
If the pattern plays out as predicted, XRP's recent stabilization phase will serve as a foundation for the next explosive move. While short-term corrections are healthy, the overall outlook remains optimistic for XRP as momentum increases towards the next significant milestone.
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