- RLUSD launched on the 17th of December.
- There have been bids of over $1,200 for a tiny fraction of the stablecoin.
As an analyst with over two decades of experience in the cryptocurrency market, I have witnessed numerous launches and their subsequent impacts on various digital assets. The launch of RLUSD by Ripple is undeniably one of the most significant events we’ve seen this year, given its potential to reshape the landscape of the stablecoin market.
Today marks the highly anticipated debut of Ripple’s stablecoin, known as RLUSD. This event has ignited a surge of curiosity and a wave of impact throughout the financial market.
The launch has additionally sparked a surge of optimism for XRP, setting it up for potential future growth as investor confidence grows stronger.
RLUSD launches into a $200 billion stablecoin market
Starting from the 17th of December, Ripple has been given the green light by the New York Department of Financial Services (NYDFS) to commence trading with its latest stablecoin, RLUSD. This approval was granted on the 10th of December.
Obtaining this regulatory approval provides Ripple with a strategic advantage in the rapidly growing stablecoin market, which is worth more than $209 billion.
As an analyst, I can report that Tether (USDT) maintains its leading position in the stablecoin market, boasting a staggering market capitalization of approximately $140.5 billion. Following closely is USDC with a market cap of around $42.3 billion, and Ethereum-based USD stablecoins (Etherna USDe) hold nearly $6 billion in assets, ranking third in the stablecoin landscape.
Early bids push RLUSD prices far beyond its peg
David Schwartz, the Chief Technology Officer of Ripple, shared that there’s been an impressive amount of interest in RLUSD even before it launches, with some bids going up to a staggering $1,200 for each unit of RLUSD.
As a researcher, I propose that the initial offers might be influenced by sentiment or speculation. Notably, it’s important to highlight that the market price is expected to become more stable once liquidity increases after the launch.
Because of limitations in available funds, RLUSD could face difficulties in keeping its value consistently at $1 during its initial stages.
In fact, Schwartz has assured investors that each RLUSD token can be exchanged for one U.S. dollar, meaning any discrepancies from the $1 peg would only be short-lived.
The price discrepancies are expected to resolve as trading volume increases and liquidity deepens.
XRP price surges: Can it hit $3?
The cost of XRP has climbed up to $2.57 due to the introduction of RLUSD, propelled by robust optimistic market conditions and technical power.
In simpler terms, the line that represents the average price of XRP over the past 50 days, currently at $1.45, is serving as a robust foundation or base for its price movement. Meanwhile, the line representing the average price over the past 200 days, situated at $0.77, highlights the solid long-term upward trend of XRP’s market direction.
The technical analysis indicates continuous strong buying activity, as indicated by a Relative Strength Index (RSI) of 67.68, which shows increasing demand, although it’s approaching the overbought zone.
Furthermore, the Accumulation/Distribution (A/D) indicator, currently at 6.35 billion, signifies substantial investor buying activity due to positive sentiment surrounding RLUSD.
To reach the expected $3 price point for XRP, it’s crucial that it continues to build momentum and hold above a significant support level at approximately $2.40. If it successfully breaks through the current resistance level at around $2.80, this could pave the way for even more upward movement.
Keep in mind that traders need to exercise caution because excessive profit-making could lead to a temporary decline, possibly causing the price to test the $2.20 level again before resuming its upward trend.
Ripple’s dual momentum with RLUSD and XRP
Launching within the RLUSD (Ripple Local Ultimate Stablecoin) initiative signifies a substantial advancement for Ripple, as it brings together regulatory endorsement and market enthusiasm.
During the early stages of RLUSD’s trade, there might be fluctuations. However, its lasting prosperity is largely dependent on the availability of liquidity and the widespread acceptance of it in the market.
Read XRP’s Price Prediction 2024–2025
Currently, XRP’s strong upward push gives it a good chance to reach new peak values. If the ongoing trend persists, a possible target could be $3.
Over the next few days, we’ll see if XRP can maintain its upward trend by leveraging the increasing interest among investors.
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2024-12-17 13:12