In a notable display of stability among a largely controlled crypto market, XRP has risen 6.7% in the past 24 hours. After dropping as low as $1.90 on December 10, the asset is once again trading above $2.36, bucking the mostly bearish sentiment that has gripped the altcoin sector.
While most altcoins have posted losses or traded sideways over the same period, and Bitcoin has only registered a modest gain of 0.7%, XRP's recent performance stands out as a clear anomaly. So, why is XRP outperforming the crypto market?
#1 Upcoming Ripple Stablecoin RLUSD Launch
A major catalyst behind XRP's rally appears to be the long-discussed launch of Ripple's stablecoin, RLUSD. Yesterday, Ripple CEO Brad Garlinghouse confirmed through X that RLUSD had obtained significant regulatory approval. He said: “This is just in… we have final approval from NYDFS for RLUSD! Exchange listings and partners will be live soon – and a reminder: when RLUSD goes live, you'll hear it from Ripple first.”
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RLUSD, which is currently in beta testing on the Ethereum network and the XRP Ledger (XRPL), has sparked enthusiasm within the XRP community. Members speculation that the introduction of the stablecoin could promote more liquidity and convenience for XRP, and the prospect may be contributing to an increase in speculative interest and so-called “FOMO” (fear of missing out).
#2 Strong activity on the XRP chain
On-chain analysis from Santiment points to encouraging metrics for XRP. The company was noted that “Average Dollar Invested Age is flashing a bullish signal,” indicates that younger dog age spreads often precede ongoing rallies.
According to Santiment, the average investment age for XRP is 865 days (22% younger in 14 weeks). Therefore, activity on the XRP network is increasing, with patterns that seem historically not to reverse until these key indicators begin to return.
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“This is one of the key indicators in the life history of any coin that helps prove that a bull market can and should continue. Similarly the bull markets of 2017 and 2021 did not stop until the average age of assets started to 'up' (get older) again. While short-term price volatility can continue to be expected, consider this valuable confidence if you remain supportive of market prices in the medium to long term,” said Santiment.
#3 whales Buy the Dip Amid Bullish technical position
From a technical point of view, the price of XRP structure is still very bullish on higher time frames. On the daily chart, XRP managed to maintain support above the April 2021 high at $1.96, quickly retracing towards the 1.272 Fibonacci extension level near $2.42, where it is the -currently going. A sustained break above $2.42 could further reinforce the bullish statement.
In particular, whales recognized the opportunity and bought the attraction. Crypto analyst Ali Martinez was noted via X: “In the recent dip, whales bought over 100 million XRP!”
Featured image created by DALL.E, a chart from TradingView.com
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