Ripple's RLUSD Stablecoin Approved, XRP Rises 15% This Week

American fintech company Ripple will launch its highly anticipated stablecoin, RLUSD, on Tuesday. This has created a bullish atmosphere for the XRP token, which has increased by more than 15% over the past week and 2.60% in the last 24 hours, nearing a price of $2.50. The upcoming launch of the dollar-pegged stablecoin could push XRP to $3 soon.

RLUSD aims to dominate cross-border transactions

According to Fortune, Ripple aims to become the leading network for cross-border transactions with the launch of RLUSD. This stablecoin received approval from the New York State Department of Financial Services (NYDFS) last week. Initially, the stablecoin will be listed on exchanges Uphold, Bitso, MoonPay, Archax, and CoinMENA, with more platforms to be added in the future.

Jack McDonald, senior vice president in charge of stablecoins at Ripple, stated that stablecoins are a 'mixed situation.' While they have similar characteristics to the US dollar, they 'are not as volatile as cryptocurrencies.' In the near future, this fintech company will focus on connecting RLUSD to the traditional financial system.

Furthermore, Ripple Payments, Ripple's subsidiary focused on cross-border payments, will start using RLUSD early next year. This could increase the use of the stablecoin while also pushing the price of XRP higher.

XRP Price Analysis

XRP is trading at $2.47 at the time of writing, with a market capitalization of $141.2 billion, making it the third-largest cryptocurrency by market cap. Interestingly, the Relative Strength Index for XRP's price action is at 65.34, indicating that the buyers are in control of the price action of this altcoin, and the slope of the line suggests a move towards $2.50.

The MACD indicator shows a bearish divergence, with the signal line (red) moving above the MACD line (blue). This means that the recent sell-off has significantly affected XRP holders. However, these two lines are getting closer together, indicating the potential for a bullish divergence in the coming days.

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