- Ripple’s RLUSD stablecoin has received approval from the NYDFS, potentially boosting XRP’s price as it launches on major exchanges.
- Following this announcement, XRP saw a nearly 7% price increase, with analysts predicting it could retest the $3 level if it maintains its upward momentum and holds above key support levels.
XRP has seen a surge in its price following Ripple’s announcement that its RLUSD stablecoin has received final approval from the New York Department of Financial Services (NYDFS). This milestone could mark the beginning of a new chapter for XRP, as the launch of RLUSD could provide the token with a significant boost.
The RLUSD Stablecoin Launch
Ripple’s CEO, Brad Garlinghouse, recently confirmed that the RLUSD stablecoin had received the green light from NYDFS, paving the way for its launch on major exchanges. RLUSD is a stablecoin designed to maintain a 1:1 peg to the US Dollar, similar to other stablecoins like USDT and USDC. The stablecoin will be backed by US Dollar deposits and other cash equivalents, adding another layer of stability to Ripple’s growing ecosystem.
The announcement of RLUSD’s approval has already caused a ripple in the market, with XRP jumping nearly 7%. This boost follows several weeks of price declines, potentially caused by large holders (whales) moving significant amounts of XRP to Binance. Despite this selling pressure, XRP has managed to maintain upward momentum, suggesting a potential for further gains.
Whale Activity and Market Movements
In the past month, over 2.66 billion XRP tokens were transferred to Binance, raising concerns about potential selling activity from whales. However, data from CryptoQuant reveals that Binance’s XRP reserve has dropped by 320 million tokens, indicating that bullish market participants are absorbing these sales. This could be a sign that XRP’s price may continue to rise, especially as the whale activity seems to have stabilized.
Interestingly, XRP’s thin liquidity has played a key role in its price fluctuations. Despite a strong market capitalization, large buy and sell orders can significantly move the price, resulting in sharp price swings. This volatility could pave the way for XRP to retest key resistance levels if the uptrend continues.
XRP’s Path to $3
Following the recent price surge, XRP is eyeing the $2.58 level, with potential to reach the psychological $3 mark, where it previously faced strong selling pressure. For XRP to maintain this bullish momentum, it will need to hold above the $1.96 support level, as a dip below that point could signal the end of its rally.
Indicators like the Relative Strength Index (RSI) and Awesome Oscillator are showing signs of weakening bullish momentum. However, as long as XRP remains above critical support levels, it could continue its upward trajectory, potentially challenging the $3 resistance level in the near future.
Conclusion
With the approval of RLUSD and strong support from market makers and exchange partners, XRP seems poised for a potential rally. While there are signs of weakening momentum, the increasing adoption of Ripple’s stablecoin and absorption of whale activity could provide the fuel needed to push XRP to new highs, possibly reaching the $3 psychological level. Keep an eye on these developments, as XRP’s future looks increasingly promising.
