XRP price has surged by nearly 6% in the past 24 hours, reclaiming the $2.30 level following the regulatory approval of Ripple’s RLUSD stablecoin by the New York Department of Financial Services (NYDFS). This milestone marks Ripple's entry into the competitive stablecoin market, sparking investor optimism and driving XRP’s price higher.
Ripple’s RLUSD Stablecoin Fuels Optimism
Ripple CEO Brad Garlinghouse announced the approval on Dec. 10, leading to XRP’s rally from $1.90 to a high of $2.42 before settling at $2.32. RLUSD, Ripple’s US dollar-backed stablecoin, is now poised for launch on exchanges and partner platforms. The stablecoin, currently in beta testing on Ethereum and XRP Ledger (XRPL), has a circulating supply of $52 million and is backed by short-term US government bonds. Analysts believe its adoption could significantly boost XRP demand by creating a less volatile asset for remittance and settlement services.
Market Reaction and Bullish Predictions
The approval of RLUSD has already caused a speculative surge in XRP’s price, but experts like Vincent Van Code suggest the real rally will come when automated market maker (AMM) and liquidity pool (LP) features are activated. These could attract significant institutional interest, increasing XRP demand as staking opportunities with potential 5% annual yields emerge.
Technical Indicators Suggest a Bullish Continuation
From a technical perspective, XRP’s recent price action forms a bull flag pattern, a bullish continuation setup. A breakout above $2.58 could push XRP’s price toward $15, representing a new all-time high. With a relative strength index (RSI) at 62, XRP still has room for further gains before approaching overbought levels.
Ripple’s RLUSD stablecoin approval not only solidifies its position in the stablecoin market but also sets the stage for XRP’s potential parabolic rise. Investors are closely watching developments as XRP positions itself for further growth in the evolving cryptocurrency landscape, according to Cointelegraph.
