XRP Jumps 13% Ahead of Ripple Stablecoin Launch
“The two assets are intertwined and investors have noticed this correlation,” one analyst said, as RLUSD transactions will burn XRP.
XRP prices have risen 21% over the past seven days and 13% over the past 24 hours, trading at $2.69 at the time of publication, as the Ripple USD (RLUSD) stablecoin was launched on the network.
XRP was launched by the co-founders of Ripple Labs in 2012, but the company has gone to great lengths to emphasize that it is not the issuer of the token. However, crypto traders know there is a connection and tend to take good news from Ripple Labs, such as the approval of its new stablecoin by New York regulators, as an indication that the price of XRP will rise.
“XRP has seen the biggest growth over the past week among the top 10 cryptocurrencies,” Obchakevich Research founder Alex Obchakevich told Decrypt, with its growth significantly outpacing Bitcoin’s 10% gain over the same time period.
“XRP has been consolidating in this bull flag for a while, but once it breaks the $2.60 resistance level, I think it will take off to the races, heading towards $4,” he added.
“XRP has benefited from being ‘known’ in retail circles, while optimism around the new US administration is leading traders to anticipate a potential ETF launch,” Jake Ostrowskis, head of the OTC trading desk at Wintermute, told Decrypt.
The comments come after New York-based asset management firm WisdomTree filed a filing in late November, making it the latest firm to register interest in launching an XRP spot ETF product.
“With XRP ETFs also likely to emerge in 2025, we expect a new all-time high for the coin by the end of Q1 at the latest,” Adam O’Neill, chief marketing officer at Bitrue, told Decrypt.
He also added that the platform expects “an increase in demand for XRP through 2025 as many pieces fall into place.” He highlighted how the company’s battles with regulators “now seem like a thing of the past” and that XRP “is set to be the main beneficiary of a pro-crypto Trump administration.”
O'Neill also noted that XRP "is getting a lot of attention from both crypto-focused and traditional media due to its 400% price increase in the past six weeks."
Meanwhile, Ripple is set to launch its RLUSD stablecoin today, and some analysts believe this is playing a role in driving market demand for XRP.
“The launch of RLUSD will also play an important role, allowing Ripple to strengthen its position in the market and continue its growth,” Obshakevich added.
