The launch of RLUSD and whale investor interest significantly boost XRP. What does this mean for its future?
XRP became the best-performing large-cap cryptocurrency on Monday following the launch of RLUSD, a stablecoin from Ripple Labs backed by U.S. dollars.
What happened
The payment-focused cryptocurrency rose 3.51% in the last 24 hours, outperforming Bitcoin and Ethereum.
With the latest momentum, XRP's monthly gains soared by 138%, the largest among cryptocurrencies in the top 10 by market capitalization.
The rally was likely driven by strong buying interest from whale investors. Renowned cryptocurrency analyst Ali Martinez noted that whales bought over 830 million XRP, worth more than $2 billion at current market prices.
The readings of the moving averages supported the coin's bullish potential. The price of XRP was higher than almost all of its exponential moving averages and simple moving averages, indicating that current investor expectations are higher than their average expectations during the past period.
However, the Moving Average Convergence Divergence (MACD) indicator, which compares two exponential moving averages, showed a 'Sell' signal.
The Buyer and Seller Strength indicator, used to measure the strength of buyers and sellers in the market, was at 'Neutral' at the time of publication.
In addition, XRP's Open Interest, a measure of its speculative interest, increased by 5.26% in the last 24 hours and nearly 450% since November 5, the day of the U.S. presidential elections, according to Coinglass data.
Approximately 75% of all Binance traders with open interest were positioned long on the asset, signaling expectations of further rises.
Why it matters
The optimism surrounding XRP is linked to several factors, the most notable being Ripple's launch of RLUSD, a payment company that uses XRP for its operations.
Ripple President Monica Long said on Monday that the launch marks a new chapter for the XRP Ledger, the blockchain technology that powers Ripple's operations.
Ripple plans to position RLUSD for a variety of financial applications, including instant cross-border settlements, Treasury operations, and integration with decentralized finance protocols.
Furthermore, with the end of the term of SEC Chairman Gary Gensler and his successor being cryptocurrency-friendly Paul Atkins, investors feel more secure about XRP.
Ripple has been caught in a nearly four-year legal battle with the SEC over the status of XRP, and any change in the agency's top leadership is viewed optimistically.