XRP Cryptocurrency Could Hit $4: Expected Impact of Stablecoin RLUSD
- Investors accumulate XRP during the dip.
- RLUSD could increase demand for XRP in 2025.
- Technical indicators suggest volatility before rally.
In the cryptocurrency market, the XRP token has been attracting attention with its recent price movement and the expectation of a new appreciation cycle. Last Sunday, December 15, 2024, XRP was trading close to US$ 2,45 with a 2% increase, while large investors, known as whales, continued to accumulate more tokens.
While XRP is aiming for a new all-time high, its price has fluctuated significantly in recent days. Between December 7 and 10, a group of whales holding between 1 million and 10 million XRP acquired over 100 million tokens. This massive purchase coincided with a sharp drop in price that took XRP from $2,61 to $1,90.
Interestingly, these whales chose to buy during the dip, which resulted in their balances increasing from approximately 4,71 billion to 4,80 billion XRP, representing an additional investment of around $200 million.
Expected impact of RLUSD stablecoin
It is worth remembering that Ripple recently had its stablecoin RLUSD approved. In this context, Georgios Vlachos, co-founder of the interoperability platform Axelar, commented about the future integration of RLUSD into the XRP Ledger and its sidechain, XRP-EVM. According to Vlachos, this innovation is expected to increase demand for XRP, especially in 2025, as RLUSD will be primarily used in transactions and remittances that will be settled on these networks.
“When you make these transfers, you pay for the gas in XRP. So XRP holders will still benefit because you burn a little bit of XRP every time you make a transaction,” Vlachos explained.
XRP on its way to $4
On the other hand, despite the optimism of many market participants regarding the future of XRP, technical indicators reveal that we can still expect a possible decline before a new high. Analyst Ali Martinez pointed out that despite the formation of a bullish flag in the price of XRP, the TD Sequential indicator on the four-hour chart signaled a possible sell-off.
$ Xrp appears to be forming a bull flag! Still, the TD Sequential recently presented a sell signal on the 4-hour chart, which leads me to believe #XRP may see a brief correction before a breakout above $2.46 that could send the price to $4! pic.twitter.com/L8zwMYT1Rb
— Ali (@ali_charts) December 12, 2024
Martinez also projected a recovery in the price of XRP, speculating that after this pullback, the price could reach $4, based on the formation of a fourth bullish pennant, a pattern that has historically preceded significant gains in the token's price.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.