Ripple Gets Regulatory Green Light for RLUSD Stablecoin Amid Whale Activity
Ripple has officially received regulatory approval from the New York Department of Financial Services (NYDFS) to launch its USD-backed stablecoin, RLUSD. This announcement, shared by Ripple CEO Brad Garlinghouse on X, comes after weeks of speculation and positions RLUSD to debut on major cryptocurrency exchanges.
Ripple’s Stablecoin Set to Go Live
RLUSD is designed to maintain a 1:1 peg to the US Dollar, similar to USDT and USDC. Ripple has ensured that the stablecoin will be backed by USD deposits, short-term government treasuries, and other cash equivalents to guarantee its stability and trustworthiness.
“This just in…we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first,” Garlinghouse tweeted on December 10, 2024.
Ripple had initially introduced RLUSD in April, followed by beta testing on the XRP Ledger and Ethereum platforms in August. In October, Ripple announced partnerships with prominent exchanges like Uphold, Bitstamp, Bitso, MoonPay, and others, alongside liquidity support from market makers B2C2 and Keyrock.
Ripple’s Ecosystem Growth and Whale Activities
The stablecoin's approval has fueled optimism about Ripple’s ecosystem. RLUSD is expected to offer Ripple a less volatile asset to enhance its remittance and settlement services, creating a positive outlook for XRP's role in cross-border payments.
Following the announcement, XRP saw a 7% price surge, bouncing back to $2.04 after dropping to $1.90 earlier in the week. However, on-chain data reveals significant whale activity, with over 2.66 billion XRP tokens transferred to Binance in the past month. This marks the highest whale transfer volume since April 2024, raising concerns about potential selling pressure.
CryptoQuant data indicates that while Binance's XRP reserves dropped by 320 million tokens during the same period, bullish traders absorbed much of the selling activity. Popular analyst Ash Crypto attributed recent XRP price swings to thin liquidity, which amplifies volatility despite XRP’s strong market capitalization.
Can XRP Reclaim $3?
XRP’s current price trajectory suggests the possibility of retesting the $3 psychological barrier, where it previously faced intense selling pressure. After rebounding from the $1.96 support, XRP has surpassed the 23.6% Fibonacci Retracement level and could target $2.58 in the near term.
However, technical indicators signal caution. While the Relative Strength Index (RSI) and Awesome Oscillator are in bullish territory, their downward trends indicate waning momentum. A daily close below $1.35 would invalidate this bullish outlook, highlighting the importance of maintaining the current uptrend above $1.96.
Conclusion
Ripple's RLUSD stablecoin launch is set to strengthen its ecosystem and add momentum to its remittance solutions. While XRP's recent recovery hints at a potential rally, market participants should monitor whale activity and key support levels to navigate potential volatility effectively.