There could be high volatility for XRP when the first RLUSD adoption data is known.
XRP is forming a potentially bullish technical pattern.
The price of XRP remains expectant due to the market launch of RLUSD, Ripple Labs’ stablecoin.
As CriptoNoticias has reported, RLUSD is a stable currency that has 1:1 parity with the US dollar and that It will be available starting today, December 17, on 5 bitcoin (BTC) and cryptocurrency exchanges.
Since the news broke, The price of XRP skyrocketed and rose more than 10% in 24 hours. Currently, its price is $2.70.
Now, the price of the Ripple cryptocurrency is facing a defining moment in its history and RLUSD can be a great price catalyst.
What happens is that the stablecoin will be issued on both the Ethereum network and the XRP Ledger, whose native currency is XRP.
The latter is important because the launch of RLUSD—if it is a successful product that convinces the market—will attract more users to that ecosystemso the adoption of XRP for the payment of commissions for transactions on that network will increase. That will generate bullish demand in the price of the currency.
For this reason, once the first adoption data for the Ripple stablecoin is known, XRP could experience a period of high volatility.
After Donald Trump’s victory in the US elections, The cryptocurrency entered a bullish cycle and reached a high of $2.90levels that were not seen 6 years ago.
Then the price of the asset experienced a slight decline and fell to $2. This adjustment is normal after a strong bullish movement and is healthy for the growth of a cryptocurrency, since it allows new investors to acquire it, while others take profits.
In this way, the price reached an equilibrium zone, establishing a stronger support that favors the next movements of XRP.
As CriptoNoticias already explained, the fact that it has stabilized above 2 dollars is a sign that The bullish pennant pattern is forming.
The beginning of this pattern is characterized by a sharp rise in price, which represents the antler, followed by a period of consolidation. At that stage, the maximum and minimum converge until they touch a point and form the pennant.
This compression usually anticipates an upward impulse, aligned with the previous trend, which in this case suggests that XRP could reach $3.
Jacobo Maximiliano, trader and analyst at the Bitget exchange, told CriptoNoticias that “from a technical point of view, XRP has activated a bullish pattern very similar to that of ether (ETH) and bitcoin.” He also detailed:
“Then there would be a strong correction below $2. And later, it should surely rise to 7 zone dollars. We will have to be very attentive to the possible execution of this bullish pattern, as we see in the graph.”
Jacobo Maximiliano, financial analyst.
Finally, it is worth remembering that the good performance of bitcoin is key for the rest of the digital assets on the market.
Historically, every time the currency created by Satoshi Nakamoto rises in price, Investor interest in other cryptocurrencies such as XRP is expanding.
