Originally published on: December 16, 2024
After a remarkable six-week surge, XRP is currently experiencing a consolidation phase as profit-taking slows down its upward momentum towards $3.00.
The XRP/USD pair has retraced 2% from its intraday high of $2.3 on Dec. 16 after peaking at $2.90 on Dec. 3. Despite the recent pullback, XRP remains up nearly 18% since its value tripled in the last six weeks.
With growing attention on XRP, driven by its impressive performance and key developments within the XRP Ledger (XRPL) ecosystem, including the impending launch of RLUSD stablecoin, there is optimism for further upside potential.
RLUSD is set to be pegged 1:1 to the US dollar and will be available on both the XRPL and Ethereum blockchains. Backed by cash reserves and US treasury bills, RLUSD will require XRP for transaction fees, boosting the adoption of XRP as a payment token in the future.
Despite concerns about possible supply constraints and price volatility upon RLUSD’s launch, Ripple’s CTO, David Schwartz, reassured investors that the stablecoin’s price would eventually stabilize around $1 after initial fluctuations.
With expectations of a crypto-friendly regulatory environment under the upcoming presidency and the launch of RLUSD, the XRP-tracked futures market has seen a surge in open interest, indicating growing market participation.
Looking at the technical analysis, XRP is exhibiting a classic “bull flag” pattern on the daily chart, suggesting a potential upward move. The bull flag formation typically leads to a breakout above the channel’s upper trendline, projecting a target price around $15, representing a significant uptick from its current level.
While this article does not provide investment advice, it highlights the bullish outlook for XRP based on technical analysis and market dynamics. Investors are advised to conduct their own research and due diligence before making trading decisions.
