As a seasoned researcher with over two decades of experience in the crypto space, I’ve seen my fair share of bull runs and bear markets. The recent rally of XRP (XRP) has been nothing short of impressive, but as I always say, what goes up must come down – at least temporarily. The current correction is a testament to that.
After a fantastic six-week surge, the progression of XRP (XRP) has temporarily plateaued due to increased profit-taking, hindering its upward momentum towards the $3.00 mark.
On December 16th, I witnessed a 2% dip in the value of my XRP/USD pair, reaching an intraday low of $2.3. This downturn seems to be part of a corrective trend that started after it peaked at $2.90 on December 3rd. Unfortunately, this slide has caused a near 18% reduction in the value of my XRP holdings, which had tripled over the past six weeks.
RLUSD stablecoin hype boosts XRP price
XRP is garnering increasing interest, not just because it has been performing well in recent weeks, but also due to significant advancements within the XRP Ledger (XRPL) community, such as the imminent launch of the RLUSD stablecoin.
1-to-1 tied with the U.S. dollar, the RLUSD digital currency is scheduled to debut on both the XRP Ledger (XRPL) and Ethereum blockchains. It will be backed by cash reserves and U.S. Treasury bills, and users will need XRP for transaction fees.
Following endorsement by the New York Department of Financial Services, the stablecoin might find broad application in day-to-day transactions and savings, especially in developing economies, as suggested by Georgios Vlachos, a co-founder of Axelar.
Vlachos points out that this development is expected to greatly increase the use of XRP as a digital currency for transactions in 2025. Furthermore, Axelar’s interoperable platform connects XRP Ledger (XRPL) with 69 other blockchain networks, facilitating smooth integration between them.
In simpler terms, David Schwartz, the CTO of Ripple, cautioned potential investors about potential issues with the availability and price volatility of RLUSD during its launch.
Schwartz addressed concerns regarding pre-launch offers inflating the value of RLUSD, suggesting that these exceptionally high bids likely stem from individuals seeking to be among the first holders of the RLUSD tokens, rather than a true reflection of their market worth.
According to a representative from Ripple, if market conditions stabilize (meaning supply and demand are balanced), it is expected that the stablecoin’s value will approach its intended dollar-equivalent of 1 USD, even though there may be fluctuations along the way.
XRP’s open interest remains high
The anticipation for a favorable cryptocurrency regulatory climate during Trump’s term and the upcoming release of RLUSD have ignited an increase in XRP-related future contracts. Notably, the open interest (IO) soared to all-time peaks on December 3rd.
The measurement called “open interest” is crucial for both traders and experts as they employ it to gauge the overall market opinion and predict potential upcoming price changes.
A larger volume of open interests signifies an influx of funds into the market, potentially strengthening the likelihood that the current trend will persist.
XRP’s giant bull flag targets $15
The trend for the XRP/USD exchange rate looks likely to regain its previous bullish trend, even after the recent adjustment, because it exhibits a typical technical pattern that suggests a positive trajectory ahead.
Labeled as a “bull flag” pattern, it emerges when the price temporarily decreases within a downward-sloping channel (the ‘flag’) after experiencing a significant upward surge (the ‘flagpole’). Subsequently, the price usually breaks past the upper boundary of this channel, often rising by an amount equivalent to the height of the flagpole.
From the chart you see, XRP’s recent price movement has shaped a pattern somewhat like a bull flag. This pattern, if followed, could point towards an upcoming bullish target. The height of this flagpole, if reached, would place XRP at approximately $15, which represents a potential increase of 520% from its current price level.
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2024-12-16 17:42