In a notable show of resilience amid a broadly subdued crypto market, XRP has rallied 6.7% over the past 24 hours. After dipping as low as $1.90 on December 10, the asset is once again trading above $2.36, largely bucking the bearish sentiment that has gripped the altcoin sector.
While most altcoins have posted or traded at a loss during the same period, and Bitcoin only recorded a modest 0.7% gain, XRP’s recent performance stands out as a clear anomaly. So, why is XRP outperforming the crypto market?
The imminent launch of #1 Ripple’s Stablecoin RLUSD
A key catalyst behind XRP’s rally appears to be the imminent launch of Ripple’s long-discussed stablecoin, RLUSD. Yesterday, Ripple CEO Brad Garlinghouse Confirmed By X that RLUSD had received a major regulatory approval. He said: “It’s just now…we have final approval from NYDFS for RLUSD! Exchange and partner lists will go live soon – and reminder: when RLUSD goes live, you’ll hear it before Ripple.”
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RLUSD, currently in beta testing on both the Ethereum network and the XRP Ledger (XRPL), has generated excitement in the XRP community. member Guessing that the introduction of stablecoins may catalyze increased liquidity and utility for XRP, and that this may contribute to an increase in speculative interest and the so-called “FOMO(fear of missing out)
#2 Strong XRP on-chain activity
On-chain analysis from sentiment points to encouraging metrics for XRP. firm noted That “average dollar investment age is flashing a bullish signal,” highlights that short-age coin distributions often precede successive rallies.
According to Sentiment, the average investment age for XRP is 865 days (22% short in 14 weeks). Thus, activity on the XRP network is increasing, with a historically similar pattern that does not reverse until it begins to reverse key indicators.
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“This is one of the key indicators in each coin’s lifetime history that helps validate that a bull market can and should continue. Similarly, the bull markets of 2017 and 2021 did not stop when Assets do not start to ‘move up’ (get bigger) until the mean age. Although short-term price volatility can be expected, if you bullish market prices in the medium and long term. If you stick with it, consider it a very valuable sign of confidence,” says Sentiment.
#3 Whales buy dips between bullish technical setups
From a technical point of view, XRP price The structure remains very fast At higher time limits. On the daily chart, XRP managed to hold support from the April 2021 high at $1.96, quickly rebounding to the 1.272 Fibonacci extension level near $2.42, where it currently hovers. A sustained break above $2.42 could reinforce the bullish narrative.
In particular, the whales recognized the opportunity and bought the retracement. Crypto analyst Ali Martinez noted By X: “In recent plunge, whale bought over 100 million XRP!”
Featured image created with DALL.E, chart from TradingView.com
