XRP Forecast Following RLUSD Approval: Are We on the Brink of a $3 Surge?

XRP is gaining traction once more, re-establishing itself at $2.60 after the approval of Ripple's RLUSD stablecoin by New York regulators. With significant investment from whales amounting to half a billion dollars and positive technical indicators at play, is XRP finally poised to break through the elusive $3 level or perhaps set new all-time highs?

XRP at $2.6

After witnessing a $1.5 billion wave of cryptocurrency liquidations on December 10, XRP resumed its upward trend on Tuesday.

While Ethereum (ETH) and Bitcoin (BTC) faced challenges trying to reclaim their $100,000 and $4,000 thresholds respectively, XRP took the lead, capitalizing on favorable market conditions. in the $2.6 region .

Following a drop to $1.90 on December 1, XRP made a remarkable recovery, surging to $2.72 within just 48 hours before slightly retracting to $2.64—a value that still falls short of its all-time high of $3.84.

RLUSD Official Launch

A significant aspect of XRP’s growing market presence is the approval of Ripple's RLUSD stablecoin by the New York Department of Financial Services (NYDFS).

CEO Brad Garlinghouse hailed this approval as a significant achievement, highlighting that it's time for the true utility of stablecoins to be recognized in today’s financial landscape. “a deliberate” decision This milestone marks significant progress for Ripple’s XRP Ledger (XRPL) infrastructure, further reinforcing the company’s foothold in the digital payment space. To enhance its global payment network, Ripple is rolling out the RLUSD stablecoin, tailored for authorized stable exchanges.

For years, Ripple has been testing the integration of its RLUSD with Central Bank Digital Currencies (CBDCs) and DeFi protocols. If the RLUSD stablecoin meets its promises, it could significantly boost the demand for XRP within this ecosystem by facilitating tokenized asset transactions.

The swift recovery of XRP isn't solely attributed to the acceptance of Ripple’s RLUSD stablecoin; a sudden surge in buying activity from whale investors has also played a crucial role.

$500M Whales Investment

The global crypto market took a hit on Monday amid geopolitical unrest. However, on-chain data patterns indicate that whale investors are stepping in, bolstering liquidity and reversing the bearish trend.

Since the controversial SEC Chairman Gary Gensler announced his impending exit in mid-November, XRP's price has been in a buying frenzy. After a minor dip that peaked at $2.91 on December 4, crypto whales have seized the opportunity presented by turbulent market conditions to acquire significant amounts of XRP. took advantage of the falling prices In the past weeks, crypto whales have injected an extra $494.2 million into the market, capitalizing on the fluctuations and the optimism surrounding the RLUSD stablecoin's approval in New York.

When whale investors make substantial purchases during market lows, this activity injects liquidity into the market, allowing distressed sellers to exit without severe price declines. Therefore, it’s little surprise that XRP's price surged beyond $2.40 on Tuesday, outpacing top assets like BTC and ETH in growth.

Several exchanges have delisted XRP, which has significantly hampered the company's domestic capabilities.

Ripple appears to be on the cusp of a comeback, bolstered by the recent developments.

Ripple Regaining Status in the U.S.

After the SEC sued Ripple in December 2020 Numerous U.S. platforms have reinstated XRP, and the NYDFS’s endorsement of RLUSD adds legitimacy to Ripple's efforts.

This supports the company's ongoing initiative to rehabilitate its reputation within the U.S. favorable verdict and more regulatory clarity.

Ripple’s Senior VP, Jack McDonald, recently expressed that with the rise of cross-border payments, launching RLUSD aligns perfectly with the company's strategic direction.

Investing heavily in pro-crypto campaigns and lobbying He believes that RLUSD’s introduction will increase demand for XRP, as the majority of transactions denominated in RLUSD are conducted on the XRP Ledger and the XRP-EVM.

Following the launch of the RLUSD stablecoin, technical indicators suggest that market sentiment is turning positive, hinting at a potential upward shift in XRP's price that could see it approach $3 soon.

Vlachos, the co-founder of Axelar, predicts Currently, XRP is facing considerable resistance around the $2.67 mark. A decisive upward close beyond this level could signal a continuation of the bullish trend, bringing prices closer to the psychologically significant $3 milestone.

Can XRP Surpass $3 Soon?

The Bull-Bear Power (BBP) indicator has shifted to a positive territory, signaling that buying sentiment is surpassing selling pressure, which strengthens the bullish outlook further. This situation could attract long-term investors as well as short-term traders keen on capitalizing on the upward momentum.

Conversely, it’s important to monitor the support levels at $2.03 and $1.41. Breaching below the $2.03 mark could undermine the bullish case and expose XRP to additional downside risks.

For XRP to achieve the anticipated breakthrough at $3, it necessitates consistent volume spikes akin to those seen during past rallies. This would establish robust market engagement.

Recently, a well-known crypto analyst, CryptoInsightUK, suggested that XRP might hit a new all-time high (ATH) of $5 by year-end. However, he also posits that XRP could exceed this threshold next year, forecasting it might reach double-digit values between January and March 2025.

The $5 target may appear overly ambitious right now, especially with only a few days left in 2024—unless an extraordinary event catapults XRP to a new ATH. If XRP maintains its current trajectory, it might breach $3.40 by the end of December 2024. But, as is customary in the crypto realm, only time will tell.

Is $5 Out of Reach for XRP Now? 

Please note that the content on this page is not intended to serve as legal, tax, investment, financial, or any other form of advice. It is essential to only invest what you can afford to lose and to seek independent financial advice if uncertain. For additional information, refer to the issuer's or advertiser’s terms, conditions, and help and support pages. MetaversePost strives for accurate and impartial reporting, but market conditions may change without notice. his own XRP projection Victoria is a writer well-versed in various technology subjects including Web3.0, AI, and cryptocurrencies. Her extensive background empowers her to create engaging articles for a broad audience.

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