Ripple Price Holds Steady Ahead of RLUSD Stablecoin Launch

Ripple’s XRP coin has maintained its steady price near its highest level this year, trading at $2.55 on Wednesday morning, just shy of its year-to-date high of $2.90.

Charles Hoskinson on RLUSD

Charles Hoskinson, founder of Cardano, expressed his excitement about the upcoming RLUSD stablecoin launch on December 4. His statement could be a sign that Cardano may consider hosting the RLUSD stablecoin on its blockchain, potentially expanding its stablecoin volume.

RLUSD, backed 1:1 by the US dollar, aims to compete with other growing stablecoins like Tether and USD Coin. It will initially launch on Ethereum and the XRP Ledger.

Competition in the Stablecoin Market

The main challenge for RLUSD is the substantial competition in the stablecoin market. Tether maintains a leading market share of 70%, followed by USD Coin, USDS, Ethena USDe, and Dai. Even PayPal’s PYUSD has accumulated just $495 million in assets, despite the big name behind it.

XRP Price Analysis

The XRP price has staged a strong comeback, rising by over 400% from its lowest point this year. The price surge is partly due to investors cheering the upcoming changes at the Securities and Exchange Commission, including the expected departure of Gary Gensler in January.

The potential appointment of crypto-friendly regulator Paul Atkins as the next head of the agency could lead to a spot XRP ETF in 2025 and more favorable regulations.

XRP Price Chart Analysis

The daily chart shows that the Ripple price has performed well in recent weeks, jumping above key levels at $1 and $2 and attempting to break above $3. The XRP price remains above all moving averages, while oscillators like the Relative Strength Index and the MACD have moved to extreme overbought levels.

Ripple is also forming a bullish pennant chart pattern, a popular bullish sign. This suggests that the XRP token may continue rising, potentially above $3.

Potential Risks

However, there is a risk that the coin could experience a brief pullback as it moves to the markdown phase of the Wyckoff Method. If this happens, it may drop to about $1.50.

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