XRP Price Defies Bearish Trend, Rallies 6%: Key Drivers Revealed
Amid the general downturn in the cryptocurrency market, XRP has shown remarkable resilience, surging 6.7% in the past 24 hours. After falling to $1.90 on December 10, the asset is once again trading above $2.36, defying the dominant bearish sentiment in the altcoin industry.
While most altcoins have posted losses or moved sideways over the same period, and Bitcoin has only managed a modest 0.7% gain, XRP’s recent outperformance is a glaring anomaly. So, why is XRP outperforming the cryptocurrency market?
#1 Ripple’s stablecoin RLUSD is launching soon
A key catalyst behind XRP’s rise appears to be the upcoming launch of Ripple’s long-discussed stablecoin RLUSD. Yesterday, Ripple CEO Brad Garlinghouse Confirmed Learned via X that RLUSD has received key regulatory approvals. He said: “We just received final approval from NYDFS for RLUSD! The exchange and partner list will be live soon – and a reminder: when RLUSD goes live, you will hear the news from Ripple first.”
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RLUSD is currently undergoing beta testing on the Ethereum network and the XRP Ledger (XRPL), igniting enthusiasm in the XRP community. member Speculate The launch of a stablecoin may facilitate increased liquidity and utility of XRP, and this expectation may lead to speculative interest and so-called “FOMO” (fear of missing out).
#2 Strong XRP on-chain activity
Santiment’s on-chain analysis points to encouraging indicators for XRP. the company famous “Average USD investment age is flashing bullish signals,” highlighting that younger coin age distributions often precede sustained rallies.
According to Santiment, the average investment age in XRP is 865 days (22% younger in 14 weeks). As a result, activity on the XRP network is increasing and similar patterns historically will not reverse until these key indicators begin to reverse.
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“This is one of the key metrics in the history of each token’s lifecycle, helping to validate that the bull market can and should continue. Likewise, the bull markets of 2017 and 2021 did not stop until the average age of the asset started to rise again” “(Getting older). While short-term price fluctuations are still to be expected, if you remain bullish on mid- to long-term market prices, consider this a very valuable signal of confidence,” Santiment said.
#3 Whales Buy the Dips Amid Bullish Technical Setup
From a technical perspective, XRP price The structure remains extremely bullish on higher time frames. On the daily chart, XRP managed to hold the support at the April 2021 high of $1.96 and quickly rebounded to the 1.272 Fibonacci extension level currently hovering around $2.42. A sustained move above $2.42 could further reinforce the bullish narrative.
Notably, whales recognized this opportunity and bought on the pullback. Cryptocurrency Analyst Ari Martinez famous via X: “Whales bought over 100 million XRP during recent dip!”
Featured image created using DALL.E, chart from TradingView.com
