XRP Price Prediction After RLUSD Approval: Is a $3 Breakout Imminent?
In Brief
XRP regains $2.60 territory after RLUSD stablecoin gets New York regulators’ green light, potentially breaking $3 mark or reaching new highs.
XRP is making waves again, reclaiming the $2.60 territory as Ripple’s RLUSD stablecoin gets the green light from New York regulators. With whale investors splurging half a billion dollars and technical indicators flashing bullish, could XRP finally be on the verge of breaking the elusive $3 mark—or even eyeing new all-time highs?”
XRP at $2.6
The XRP price resumed its upward trend on Tuesday after a $1.5 billion cascade of crypto liquidations on Dec 10.
Although Ethereum (ETH) and Bitcoin (BTC) struggled for a while to regain their $100,000 and $4,000 barriers, respectively, XRP has quickly jumped ahead of the market momentum and is now in the $2.6 region.
After dropping to $1.90 on Dec 1, XRP drastically jumped to $2.72 in just 48 hours, before dropping slightly to $2.64 at the moment, which is still lagging behind the ATH of $3.84.
RLUSD Official Launch
One important factor in XRP’s market dominance is the fact that Ripple’s RLUSD stablecoin has been approved by the New York Department of Financial Services (NYDFS).
CEO Brad Garlinghouse called this move “a deliberate” decision to gain the approval of a world-leading authority, emphasizing that it’s time to embrace the “real utility” of stablecoins in the modern era.
This is a huge step forward for Ripple’s XRP Ledger (XRPL) infrastructure and further solidifies the company’s position in the digital payments industry. As part of its ongoing effort to improve its worldwide payment network, Ripple has introduced the RLUSD stablecoin, which is ideal for authorized stable exchanges.
For several years, Ripple has been doing test runs of its RLUSD integration with CBDCs and DeFi protocols. There may be an uptick in demand for the native XRP currency in the ecosystem if the new RLUSD stablecoin delivers on the promise of supporting tokenized asset settlement.
$500M Whales Investment
The acceptance of Ripple’s RLUSD stablecoin is only one factor that looks to have contributed to XRP’s quick recovery; a strange buying frenzy among whale traders is another.
Crypto markets throughout the world went into a spiral on Monday due to geopolitical concerns. However, according to patterns in on-chain data, whale investors took advantage of the falling prices, increasing liquidity and reversing the downward trend.
Since controversial SEC Chairman Gary Gensler announced his impending departure in mid-November, the price of XRP has been going on a purchasing frenzy. Following a little dip in price that peaked at $2.91 on Dec 4, crypto whales have pounced on the subsequent market turbulence to acquire substantial quantities of XRP coins.
Crypto whales have invested an additional $494.2 million in previous weeks, taking advantage of market volatility and the bullish mood around the RLUSD stablecoin acceptance in New York.
During market dips, when whale investors make massive acquisitions all at once, it increases market liquidity, which lets panic sellers sell without dragging prices down too much. Because of this, it is not surprising that XRP price jumped beyond $2.40 on Tuesday, surpassing other leading assets such as BTC and ETH in terms of growth rate.
Ripple Regaining Status in the U.S.
After the SEC sued Ripple in December 2020, several exchanges delisted XRP, drastically reducing the company’s domestic potential.
Ripple seems to be on the verge of a revival thanks to a recent favorable verdict and more regulatory clarity.
A number of U.S. platforms have re-listed XRP, and Ripple’s activities have been given more legitimacy with the NYDFS’s approval of RLUSD.
Investing heavily in pro-crypto campaigns and lobbying is part of the company’s continuous attempt to repair its image in the U.S.
Ripple’s senior VP, Jack McDonald, recently stated that with the significant growth in “cross-border” payments, launching RLUSD was a logical move in the company’s trajectory.
Vlachos, the co-founder of Axelar, predicts that the introduction of RLUSD would boost demand for XRP since most RLUSD-denominated transactions are processed on the XRP Ledger and the XRP-EVM.
Can XRP Surpass $3 Soon?
Following the adoption of the RLUSD stablecoin, technical indicators show that market sentiment has improved, suggesting that the XRP price may soon undergo a bullish turnaround and reach $3.
To start, around $2.67, XRP is meeting strong resistance. If this level is decisively closed above, it could mean that the rising trend is continuing and that prices will rise until they reach the psychological $3 mark.
The Bull-Bear Power (BBP) indicator has turned green, indicating that selling activity is outweighed by greater bullish pressure, further bolstering the bullish thesis. This arrangement has the potential to entice long-term investors as well as short-term traders looking to profit from the rising trend.
When looking at the downside, however, $2.03 and $1.41 are important support levels to keep an eye on. The bullish argument may be rendered useless and XRP might be subjected to more negative risk if it breaks below $2.03.
In order to reach the highly expected $3 price breakthrough, XRP must see persistent volume spikes similar to those observed during prior surges. This would confirm that there is considerable market involvement.
Is $5 Out of Reach for XRP Now?
Several weeks ago, a renowned crypto expert, CryptoInsightUK, revealed his own XRP projection, suggesting that the asset may reach a new all-time high (ATH) of $5 by the end of the year. Nevertheless, he anticipates that XRP will rise beyond this level in the next year, with a projected jump to double-digit prices from January to March 2025.
Of course, the $5 projection seems a bit out of reach at the moment, given that we’re only days away from closing out 2024 unless a drastic event catapults XRP to a new ATH. If XRP continues its current trajectory, it could surpass $3.40 by the end of December 2024. But we’ll have to see how this plays out. With crypto, you just don’t know.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
More articles
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
