The much-anticipated stablecoin by Ripple, RLUSD, has been officially launched today, sparking considerable interest and creating a ripple effect in the market.
This launch has also generated positive momentum for XRP, setting the stage for further increases as investor confidence grows.
RLUSD Enters a Stablecoin Market Valued at $200 Billion
Ripple’s announcement on December 16 stated that RLUSD, its latest stablecoin, would commence trading on December 17 after receiving approval from the New York Department of Financial Services (NYDFS) on December 10.
This regulatory approval gives Ripple a competitive edge in the expanding stablecoin market, which is valued at more than $209 billion.
While Tether (USDT) maintains its dominance with a market cap of $140.5 billion, USDC and Ethena USDe hold the second and third positions with $42.3 billion and nearly $6 billion, respectively.
Initial Bids Drive RLUSD Prices Significantly Above its Set Value
David Schwartz, the CTO of Ripple, disclosed that RLUSD attracted exceptional bids even before its launch, with some offers reaching as high as $1,200 per RLUSD.
Schwartz indicated that these bids might be driven by sentiment or speculation, stressing that the price will stabilize as liquidity increases post-launch.
Due to limited liquidity, RLUSD might face challenges in maintaining its intended $1 valuation during its initial phase.
However, Schwartz affirmed that RLUSD tokens can be redeemed for $1 each, indicating that any deviation from the set value is likely temporary.
Price variations are expected to resolve as trading volume rises and liquidity deepens.
XRP Price Soars: Is $3 Attainable?
XRP’s price has surged to $2.57 following the launch of RLUSD, benefiting from strong bullish sentiment and technical momentum.
The 50-day moving average, standing at $1.45, provides robust support, while the 200-day moving average, located at $0.77, underscores XRP’s enduring bullish trend.
Technical indicators suggest a sustained buying pressure, with the Relative Strength Index (RSI) at 67.68 signaling an uptick in demand, though approaching overbought levels.
Furthermore, the Accumulation/Distribution (A/D) indicator at 6.35 billion indicates substantial investor accumulation amidst optimism driven by RLUSD.
For XRP to reach the eagerly anticipated $3 milestone, it needs to maintain momentum above the critical support level at $2.40. A breakthrough above the immediate resistance level of $2.80 could pave the way for further upward movement.
Nevertheless, traders should exercise caution as profit-taking could trigger a short-term pullback, potentially testing the support at $2.20 before any renewed upward momentum.
Ripple’s Dual Momentum with RLUSD and XRP
The launch of RLUSD signifies a significant milestone for Ripple, combining regulatory approval with market excitement.
While the initial trading phase of RLUSD may witness volatility, its long-term success hinges on liquidity and adoption.
Simultaneously, XRP’s bullish trend positions it favorably to explore new highs, with $3 emerging as a feasible target if the current trajectory holds.
The upcoming days will reveal whether XRP can leverage the increasing investor enthusiasm to sustain its upward movement.