Analysis of XRP Price Rise and RLUSD Stablecoin Growth
The XRP price has been on an upward trend, reaching its highest level in over a month, with a current price of $2.60. This surge can be attributed to several factors, including the growth of Ripple’s USD stablecoin, RLUSD. According to CoinGecko, RLUSD has attracted over $72 million in assets, with a 24-hour trading volume of $162 million, making it the sixth-most used stablecoin in the crypto market.
RLUSD vs. Other Stablecoins
RLUSD has surpassed other popular stablecoins, including Justin Sun’s USDD, Frax, and PayPal’s PYUSD. Notably, PYUSD, which has a market cap of $534 million, recorded a 24-hour volume of just $22 million. However, RLUSD still faces stiff competition from major stablecoins such as Tether (USDT) and USD Coin, which had 24-hour volumes of $74 billion and $6.7 billion, respectively.
Impact on Ripple Network
The growth of RLUSD and the performance of Ripple meme coins have helped boost the utility of the Ripple network, which has been criticized in the past as a “ghost chain.” The increasing adoption of RLUSD and other Ripple-based assets may help to dispel this notion and demonstrate the network’s potential for real-world use cases.
XRP Price Analysis
The weekly chart shows that XRP has risen for three consecutive days, even as other cryptocurrencies have declined. The recovery began when the coin dropped to the psychological level of $2, which forms the lower boundary of a symmetrical triangle. This pattern is part of a bullish pennant formation. XRP has also formed a break-and-retest pattern, dipping to a key support level of $1.9660, its previous all-time high. This pattern is widely seen as a bullish continuation signal.
Technical Indicators
XRP remains above all major moving averages, suggesting further bullish momentum. The next crucial resistance level to watch is $2.9150, which could serve as the next target in the ongoing rally. With a 58% chance of the Securities Exchange Commission approving a spot XRP ETF in 2025, according to Polymarket users, XRP price could continue to rise in the coming days, especially with Donald Trump’s inauguration nearing.
Predictions
Based on the analysis, here are some potential predictions for the XRP price and the RLUSD stablecoin:
- XRP price may continue to rise, potentially reaching the $2.9150 resistance level, driven by increasing adoption of RLUSD and other Ripple-based assets.
- RLUSD may continue to gain traction, potentially surpassing other stablecoins in terms of market cap and trading volume, as it becomes a more widely accepted and used stablecoin.
- The growth of RLUSD and other Ripple-based assets may help to increase the utility of the Ripple network, dispelling the notion of it being a “ghost chain” and demonstrating its potential for real-world use cases.
- The approval of a spot XRP ETF in 2025 may provide a significant boost to the XRP price, as it would provide a new and more accessible way for investors to gain exposure to the asset.
Overall, the XRP price rise and the growth of RLUSD stablecoin are positive developments for the Ripple ecosystem, and may indicate a bright future for the network and its assets.
