Ripple is launching its new stablecoin, Ripple USD (RLUSD), on December 17, 2024. This stablecoin will be linked to the US dollar and designed for financial transactions like cross-border payments and decentralized finance (DeFi). RLUSD will be available on several exchanges at first, such as Uphold and Bitso, and will run on the XRP Ledger and Ethereum blockchains for wider access. Each RLUSD token will be backed by US dollar deposits and government bonds, with monthly checks by an independent firm for transparency. Ripple aims to use RLUSD to improve transaction efficiency while meeting regulatory standards. Following this announcement, Ripple's token, XRP, saw an 8% price increase, indicating positive market reactions. Overall, RLUSD aims to strengthen Ripple's payment solutions in the growing cryptocurrency market.
Whale Activity and XRP Price Impact
This month, XRP has seen a lot of activity from large investors, known as whales, which has impacted its price. Since early December, whales have bought around $526 million worth of XRP, increasing their holdings from 4.58 billion to 4.79 billion coins. Over the weekend, they added another 160 million XRP, valued at about $380 million, showing strong interest. A significant transfer of 60 million XRP worth around $144.7 million was also noticed, coinciding with a 10% price rise for XRP. Ripple moved 380 million XRP (about $915 million) to an unknown wallet, affecting the market too. As a result, XRP's price has surged over 400% since early November and is now around $2.33 to $2.47. However, while whale buying often indicates bullish trends, it could also lead to volatility if they decide to sell.
Technical Analysis of XRP
XRPUSD has recovered more than 30% after a minor sell-off. It hit a low of $1.890 and is currently trading around $2.47. A daily close below $1.60 would signal a further minor bearish trend. However, XRP remains above both short-term (34 EMA and 55 EMA) and long-term moving averages (200-day EMA) on the 4-hour chart, indicating some stability.
Resistance and Support Levels
The immediate resistance level for XRP is around $3; a breakout above this level could push prices higher. If it surpasses $3.30, a significant bullish trend may develop, potentially leading to $4 or $5 targets. On the downside, immediate support is at $2.50, with further targets at $2.20, $2.00, $1.60, $1.27, $1.00, $0.85, and $0.74. Market indicators such as the Directional Movement Index and CCI (50) are currently bullish.
Trading Strategy Recommendations
Given the current market conditions, buying on dips around $2 may be wise, setting a stop-loss at $1.60 and targeting a profit at $3.30. This strategy allows traders to take advantage of potential upward movements while effectively managing risk.