XRP (XRP) has stalled after an incredible six-week rally as profit booking slowed the altcoin’s $3.00 rally.
The XRP/USD pair peaked at $2.90 on December 3 and then fell 2% to an intraday low of $2.3 on December 16 in a correction trend that began. As a result, XRP’s price tripled and then fell nearly 18%. This is the value for the last 6 weeks.
XRP price rises on RLUSD stablecoin hype
XRP is receiving increasing attention due to its outstanding performance over the past few weeks, as well as major developments within the XRP Ledger (XRPL) ecosystem, including the upcoming RLUSD stablecoin.
RLUSD, pegged 1:1 to the US dollar, will be launched on the XRPL and Ethereum blockchains and will be backed by cash reserves and US Treasury bonds. RLUSD requires XRP as transaction fees.
After receiving approval from the New York Department of Financial Services, stablecoins could be widely used for transactions and savings, especially in emerging economies, according to Axelar co-founder Georgios Vlachos.
Vlachos points out that this will significantly drive the adoption of XRP as a payment token in 2025. Axelar’s interoperability platform also connects XRPL to 69 other blockchains, enabling seamless integration.
Meanwhile, Ripple’s Chief Technology Officer David Schwartz warned investors of possible supply restrictions and price fluctuations for RLUSD upon launch.
Schwartz also responded to concerns about pre-launch offers that appeared to boost the value of RLUSD, explaining that these high bids probably reflect people seeking the novelty of holding the first RLUSD token.
source: david schwartz
Ripple executives confirmed that despite these expected fluctuations, the stablecoin price will settle close to the planned $1 parity once supply and demand return to normal.
XRP’s open interest remains high
Expectations of a cryptocurrency-friendly regulatory environment under President Trump’s term and the anticipated launch of RLUSD have sparked growth in XRP tracking futures, with Open Interest (IO) hitting an all-time high on December 3.
Open interest is a key indicator used by traders and analysts to assess market sentiment and predict future price movements.
XRP open interest. Source: Coinglass
High open interest simply means more funds are entering the market, increasing the likelihood that the trend will continue.
XRP’s massive bull flag is targeting $15.
The XRP/USD pair is expected to resume its dominant bullish momentum despite the price correction as it displays a classic technical structure with an upside outlook.
This pattern, called a “bull flag”, forms when the price has a strong uptrend (flag) followed by a downward trend in a descending channel (flag). Ultimately, the price breaks the upper trendline of the channel and usually rises as high as the flagpole. key.
XRP/USD daily chart featuring a bull flag pattern. Source: Cointelegraph/TradingView
XRP’s recent price action has led to the formation of a similar bullish flag pattern as shown in the chart above. Therefore, the next bullish target would be the height of the flagpole, which would be around $15, a 520% increase from the current price.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.