XRP (XRP) stalls after an amazing six-week rally as profit-booking slows down the altcoin’s rally toward $3.00.
The XRP/USD pair is down 2% to its intraday low of $2.3 on Dec. 16 in a corrective trend that began after it topped out at $2.90 on Dec. 3. As a result, XRP’s price is down by almost 18% after tripling its value in the past six weeks.
RLUSD stablecoin hype boosts XRP price
XRP has been receiving growing attention, not only because of its outperformance over the last few weeks but also due to major developments within the XRP Ledger (XRPL) ecosystem, including the upcoming RLUSD stablecoin.
Pegged 1:1 to the US dollar, RLUSD is set to launch on the XRPL and Ethereum blockchains and will be backed by cash reserves and US treasury bills. RLUSD will require XRP for transaction fees.
After receiving approval from the New York Department of Financial Services, the stablecoin could be widely used for transactions and savings, particularly in emerging economies, according to Georgios Vlachos, co-founder of the Axelar.
Vlachos notes that this will significantly boost the adoption of XRP as a payment token in 2025. Axelar’s interoperability platform also links XRPL to 69 other blockchains, enabling seamless integration.
Meanwhile, Ripple’s chief technology officer, David Schwartz, warned investors about possible supply constraints and price fluctuations for RLUSD upon launch.
Schwartz also responded to worries about pre-launch offers that seem to be boosting the value of the RLUSD, explaining that rather than reflecting actual market worth, such high bids probably reflect people looking for the novelty of holding the first RLUSD tokens.
Source: David Schwartz
The Ripple executive confirmed that once supply and demand return to normal, the stablecoin price would settle close to its planned $1 parity, notwithstanding these anticipated swings.
XRP’s open interest remains high
Expectations of a crypto-friendly regulatory environment under Trump’s presidency and the pending launch of RLUSD have sparked growth in XRP-tracked futures, with the open interest (IO) zooming to record highs on Dec. 3.
Open interest is a key metric that traders and analysts use to assess market sentiment and anticipate future price movements.
XRP open interest. Source: CoinGlass
Higher open interest simply indicates that more money is entering the market, raising the chances that the trend will continue.
XRP’s giant bull flag targets $15
The XRP/USD pair is expected to resume its prevailing bullish momentum despite the price correction as it paints a classic technical structure with an upside outlook.
Dubbed a "bull flag,” the pattern forms when the price consolidates lower in a descending channel (flag) following a strong move upward (flagpole). Ultimately, the price breaks above the channel’s upper trendline, typically rising by as much as the flagpole’s height.
XRP/USD daily chart featuring bull flag pattern. Source: Cointelegraph/TradingView
XRP’s recent price action has led it to form a similar bull flag pattern, as shown in the chart above. Thus, the next bullish target is the flagpole’s height, which comes to be around $15, a 520% uptick from the current price.
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.
