As an analyst with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and trends. The recent developments surrounding Ripple‘s stablecoin, RLUSD, and its impact on XRP have piqued my interest.

TL;DR

  • Ripple’s stablecoin RLUSD gained support from another well-known cryptocurrency exchange.
  • XRP rebounded to $2.27 after a correction, with analysts predicting a substantial rally in the short term.

The Next Exchange to Jump on the Bandwagon

Following several months of trials and readiness checks, Ripple’s stablecoin was officially launched in mid-December, following approval from the New York Department of Financial Services (NYDFS).

The digital currency, known as RLUSD, is directly linked to the US dollar and intended to significantly contribute to Ripple’s international payment services. When it was introduced, this stablecoin received widespread support from several cryptocurrency trading platforms, including Uphold, Bitstamp, Bitso, Moonpay, CoinMENA, among others.

Most recently, the Peter Thiel-backed Bullish also joined the list. The company announced that users can deal with the following trading pairs: RLUSD/USDC, BTC/RLUSD, XRP/RLUSD, ETH/RLUSD, USD/RLUSD, EUR/RLUSD, and SOL/RLUSD. 

Earlier this month, Ripple’s Chief Technology Officer, David Schwartz, cautioned the community about possible market turbulence regarding their product. He suggested that there could be some initial price swings, but in the long run, the price should stabilize around $1. Furthermore, Mr. Schwartz advised against rushing into a stablecoin investment as it is not a means to become wealthy.

Based on data from CoinGecko, RLUSD began trading at roughly $1 when it was launched, but in subsequent days, its value fluctuated between about $0.96 and $1.06. Since the beginning of this week, however, its valuation has remained relatively stable, and it’s currently trading around $0.99.

XRP Price Outlook

Many industry players believe that the launch of RLUSD could be contributing to an increase in the price of Ripple’s native token, XRP. In fact, following its debut in mid-December, the value of XRP significantly increased, reaching $2.70 at one point.

Despite a recent downturn in the cryptocurrency market that drove its value below $2 towards the end of last week, the price has since rebounded slightly. Currently, one unit of XRP is valued at approximately $2.27.

Crypto X is swarming with analysts who think a new rally is imminent. A popular user of X, Crypto Bitlord with nearly 400,000 followers, has expressed his view that “the final surge for 2024 is gathering momentum.” Meanwhile, CrediBULL Crypto has stated that “the XRP/BTC chart below looks simply outstanding” and “the most optimistic-looking chart in the entire sector.

One factor suggesting a potential price surge for Ripple’s native token in the upcoming timeframe could be the increased activity by whale investors. As reported by Ali Martinez, these large-scale investors have recently acquired millions of tokens over the past week.

Performing these actions reduces the amount of XRP circulating on the market, possibly causing the price to rise if demand stays consistent or increases. Large investor purchases might also spark excitement among smaller investors, prompting them to join in and potentially boost the price surge even further.

 

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2024-12-25 16:35