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XRP continues to capture the spotlight with its latest price trends and ongoing developments in the XRPL ecosystem, hinting at significant potential for investors.
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The altcoin has not only demonstrated resilience following a substantial rally but is also seeing growing interest thanks to the upcoming launch of the RLUSD stablecoin.
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“The stablecoin is expected to significantly boost adoption of XRP,” noted Georgios Vlachos, co-founder of the Axelar.
Discover the latest developments in the XRP ecosystem, including the impact of RLUSD stablecoin and bullish price targets as XRP rallies post-correction.
RLUSD Stablecoin Hype Boosts XRP Price
XRP has been receiving growing attention, not only because of its outperformance over the last few weeks but also due to major developments within the XRP Ledger (XRPL) ecosystem, including the upcoming RLUSD stablecoin.
Pegged 1:1 to the US dollar, RLUSD is set to launch on the XRPL and Ethereum blockchains and will be backed by cash reserves and US treasury bills. RLUSD will require XRP for transaction fees.
After receiving approval from the New York Department of Financial Services, the stablecoin could be widely used for transactions and savings, particularly in emerging economies, according to Georgios Vlachos, co-founder of the Axelar.
Vlachos notes that this will significantly boost the adoption of XRP as a payment token in 2025. Axelar’s interoperability platform also links XRPL to 69 other blockchains, enabling seamless integration.
Meanwhile, Ripple’s chief technology officer, David Schwartz, warned investors about possible supply constraints and price fluctuations for RLUSD upon launch.
Schwartz also responded to worries about pre-launch offers that seem to be boosting the value of the RLUSD, explaining that rather than reflecting actual market worth, such high bids probably reflect people looking for the novelty of holding the first RLUSD tokens.
Source: David Schwartz
The Ripple executive confirmed that once supply and demand return to normal, the stablecoin price would settle close to its planned $1 parity, notwithstanding these anticipated swings.
XRP’s Open Interest Remains High
Expectations of a crypto-friendly regulatory environment under Trump’s presidency and the pending launch of RLUSD have sparked growth in XRP-tracked futures, with the open interest (IO) zooming to record highs on Dec. 3.
Open interest is a key metric that traders and analysts use to assess market sentiment and anticipate future price movements.
XRP open interest. Source: CoinGlass
Higher open interest simply indicates that more money is entering the market, raising the chances that the trend will continue.
XRP’s Giant Bull Flag Targets $15
The XRP/USD pair is expected to resume its prevailing bullish momentum despite the price correction as it paints a classic technical structure with an upside outlook.
Dubbed a “bull flag,” the pattern forms when the price consolidates lower in a descending channel (flag) following a strong move upward (flagpole). Ultimately, the price breaks above the channel’s upper trendline, typically rising by as much as the flagpole’s height.
XRP/USD daily chart featuring bull flag pattern. Source: Cointelegraph/TradingView
XRP’s recent price action has led it to form a similar bull flag pattern, as shown in the chart above. Thus, the next bullish target is the flagpole’s height, which comes to be around $15, a 520% uptick from the current price.
Conclusion
As XRP navigates through price corrections and prepares for the potential impact of RLUSD, the market indicators suggest a bullish trajectory ahead. The upcoming stablecoin launch and its connection to XRP could redefine its role within the broader crypto landscape, setting the stage for new growth opportunities. The anticipated price target of $15 underscores the volatility and potential rewards of investing in XRP as it capitalizes on these developments.
