XRP has seen a significant increase in price, rising by almost 6% in the past 24 hours to reach around $2.14.
This surge follows the recent approval of Ripple's RLUSD stablecoin by the New York Department of Financial Services (NYDFS). The approval allows RLUSD to be launched on exchanges and partner platforms, marking Ripple's entry into the stablecoin market.
The price of XRP experienced a sharp rise from $1.90 to $2.42 on December 10, settling around $2.32. This increase can be attributed to investor optimism surrounding the regulatory approval of RLUSD. Ripple CEO Brad Garlinghouse's announcement has sparked enthusiasm among investors, suggesting that the launch of RLUSD could enhance Ripple's remittance and settlement services.
RLUSD is currently undergoing beta testing on the Ethereum network and the XRP Ledger (XRPL), with a circulating supply of $52 million. The approval of RLUSD is expected to have positive implications for XRP, potentially leading to increased demand for the cryptocurrency. However, some experts caution that the current price increase may be driven more by speculation than by fundamental factors.
The establishment of automated market makers (AMM) and liquidity pools (LP) could further drive growth for XRP. Technical analysis suggests that XRP's recent price action has formed a bullish flag pattern, indicating a continuation of the upward trend. If XRP breaks above the upper trendline of the flag at $2.58, it could see a significant price increase, with projections suggesting a potential target of $15. The daily relative strength index (RSI) for XRP remains positive, indicating room for further price appreciation.
The impact of regulatory approvals and the introduction of new financial products will likely shape the trajectory of XRP and its competitors in the evolving cryptocurrency market.