XRP’s recent rally has formed a continuation pattern of the trend and is now above $15.
The XRP/USD pair fell 2% to a low of $2.3 on December 16, part of a correction that began after reaching $2.90 on December 3. Its value has tripled in the past six weeks. RLUSD Stablecoin Hype Pushes XRP Price Higher
XRP has been gaining more attention not only due to its recent gains, but also due to major developments in the XRP Ledger (XRPL) system, including the launch of the RLUSD stablecoin.
RLUSD is pegged 1:1 to the US dollar, will be launched on the XRPL and Ethereum blockchains, and will be backed by US Treasury bills and currency reserves. RLUSD will require XRP to cover transaction fees.
Georgios Vlachos, the founder of Axelar, said that after receiving approval from the New York Department of Financial Services, stablecoins can be used for transactions and deposits, especially in developing countries.
Vlachos said that this will significantly increase the adoption of XRP as a token of payment by 2025. Axelar’s collaborative platform connects XRPL to 69 other blockchains, enabling seamless integration.
At the time, Ripple’s chief technology officer David Schwartz warned investors that RLUSD could face supply constraints and price fluctuations after its launch.
Schwartz also voiced concerns that the pre-launch offering would inflate the value of RLUSD, explaining that the high price may reflect the novelty of those interested in acquiring the first wave of RLUSD tokens, rather than reflecting the true market value.
XRP open interest remains high
Expectations of a crypto-friendly regulatory environment under President Trump and the imminent launch of RLUSD are keeping XRP’s future growth in check, with open interest (IO) rising to a new 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’s main target is $15
Despite the price correction, the XRP/USD pair is well positioned to continue its current trend as the pair displays a classic technical structure and is headed in the right direction.
This pattern, known as a “Bull Flag”, occurs when the price consolidates within a descending channel (Flag) after a strong uptrend (Flagpole). The height is similar to the flagpole.
