What is next for XRP price as Hoskinson supports Ripple RLUSD?
Ripple price held steady near its highest level this year ahead of the highly anticipated RLUSD stablecoin launch.
Ripple’s (XRP) coin was trading at $2.55 Wednesday morning, within striking distance of its year-to-date high of $2.900.
In an X post, Charles Hoskinson, Cardano (ADA) founder, said that he was “excited about RLUSD.” He tweeted that in response to a CT article describing more details about the stablecoin that launches on Dec. 4.
His post could be a sign that Cardano may agree to have the RLUSD stablecoin launch on its blockchain. That would be significant since Cardano’s network now has just $24 million in stablecoins. A future expansion of RLUSD to the Cardano ecosystem would help it grow its stablecoin volume.
RLUSD, which is backed 1:1 by the US dollar, aims to compete with other growing stablecoins like Tether and USD Coin. Tether maintains a leading market share, with a 70% dominance. USD Coin, USDS, Ethena USDe, and Dai follow it. It will initially launch on Ethereum and the XRP Ledger.
The main challenge for the RLUSD stablecoin is substantial competition. For example, PayPal’s PYUSD has accumulated just $495 million in assets, despite the big name behind it.
The RLUSD launch comes at a time when the XRP price has staged a strong comeback, rising by over 400% from its lowest point this year.
XRP has also jumped as investors cheer the upcoming changes at the Securities and Exchange Commission. Gary Gensler, who has battled Ripple Labs for the past four years, is expected to step down in January.
Meanwhile, Donald Trump is now considering the crypto-friendly regulator, Paul Atkins as the next head of the agency. Such a move could lead to a spot XRP ETF in 2025 and more favorable regulations.
XRP price analysis
The daily chart shows that the Ripple price has performed well in recent weeks. It has jumped above key levels at $1 and $2 and is now attempting to break above $3.
XRP price remains above all moving averages, while oscillators like the Relative Strength Index and the MACD have moved to extreme overbought levels.
Ripple is also forming a bullish pennant chart pattern, a popular bullish sign. Therefore, there is a likelihood that the XRP token will continue rising, potentially above $3.
The risk, however, is that the coin could experience a brief pullback as it moves to the markdown phase of the Wyckoff Method. If this happens, it may drop to about $1.50.
