XRP price rises as RLUSD stablecoin flips PYUSD on a key metric

The cost of XRP climbed higher and peaked at a point not seen in more than a month, reflecting the recovery of cryptocurrencies overall.

On December 30th, Ripple (XRP) hit a significant low at $2. Since then, it’s been on an upward trajectory and has reached a high of approximately $2.60.

One factor contributing to the increase in XRP could be the steady expansion of Ripple’s US dollar-backed stablecoin, known as RLUSD. This digital currency has recently gathered more than 72 million dollars worth of assets.

As reported by CoinGecko, it appears that the usage of RLUSD is growing, as evidenced by a 24-hour trading volume of $162 million. This substantial volume positions RLUSD as the sixth most popular stablecoin in the cryptocurrency market.

It’s worth mentioning that RLUSD has outperformed other well-known stablecoins such as USDD by Justin Sun, Frax, and PYUSD from PayPal. Interestingly, despite having a market cap of $534 million, PYUSD only managed a 24-hour trading volume of $22 million.

Nevertheless, RLUSD is up against tough rivalry from well-established stablecoins like Tether (USDT) and USD Coin, with daily trading volumes of around $74 billion for Tether and $6.7 billion for USD Coin.

The surge in XRP’s value appears to align with an increased appetite among investors for Ripple-related meme coins. Among the notable gainers this week are freshly introduced tokens like Pongo, XRP Troops, PHNIX, and Britto.

The expansion of RLUSD (Ripple’s USD stablecoin) and the success of Ripple-themed meme coins have significantly increased the usefulness of the Ripple network, previously labeled as a “phantom” or “ghost” chain due to past criticisms.

The price of XRP may keep increasing in the approaching days due to Donald Trump’s inauguration. Investors in cryptocurrency believe that Ripple stands to gain substantially from this event, as it could bring about major transformations at the Securities Exchange Commission. For instance, users on Polymarket estimate a 58% likelihood that the commission will endorse a spot XRP ETF by 2025.

XRP price analysis

As a researcher, I’ve been closely tracking the market trends, and I noticed an interesting development with XRP. For the past three days, while most other cryptocurrencies have seen a downturn, XRP has remarkably risen. This upward trend seems to have started when the coin dipped down to the psychologically significant level of $2, which also happens to be the lower boundary of a symmetrical triangle I’ve identified. This triangle is part of a bullish pennant formation, suggesting potential optimism for XRP in the near future.

XRP has additionally created a ‘bounce-and-retest’ formation, dropping to a significant support point of $1.9660, which was its prior record peak. This pattern is often interpreted as a positive sign for further price increases.

XRP currently hovers above its key moving averages, indicating a potential continuation of its upward trend. A significant resistance level to keep an eye on is approximately $2.9150, which may act as the next objective for the ongoing surge.

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2025-01-14 17:42