TLDR
- Ripple’s RLUSD stablecoin received final approval from the New York Department of Financial Services, triggering a 10% surge in XRP price
- RLUSD currently has a total supply of $52 million split between Ethereum ($41.7M) and XRPL ($10.4M)
- XRP broke above key resistance at $2.25, showing strong upward momentum and outperforming Bitcoin and Ethereum
- The stablecoin is backed by short-term U.S. government bonds and will operate on both XRP Ledger and Ethereum networks
- Technical indicators show bullish signals with XRP trading above the 100-hourly Simple Moving Average and MACD gaining momentum
The price of XRP experienced a sharp increase of 10% on Tuesday after Ripple announced it had received regulatory approval for its RLUSD stablecoin from the New York Department of Financial Services. The news propelled XRP’s value above the $2.25 mark, outpacing broader cryptocurrency market performance.
Ripple CEO Brad Garlinghouse shared the announcement on social media platform X, stating “This just in…we have final approval from NYDFS for RLUSD! Exchange and partner listings will be live soon.” The approval marks a key milestone for Ripple as it enters the competitive stablecoin market.
This just in…we have final approval from @NYDFS for $RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first.
— Brad Garlinghouse (@bgarlinghouse) December 10, 2024
RLUSD, which is backed by short-term U.S. government bonds, is currently undergoing beta testing on both the XRP Ledger and Ethereum networks. Data from CryptoQuant reveals that the stablecoin already has a supply of $52 million, with $41.7 million on Ethereum and $10.4 million on XRPL.
The stablecoin’s development aligns with Ripple’s strategy to expand its presence in the digital asset space. Monica Long, Ripple’s President, emphasized that RLUSD will play an essential role in real-world asset tokenization, stating, “We aim to be a key intermediary for bridging traditional financial assets onto blockchain rails.”
Technical analysis shows that XRP’s price movement broke through several resistance levels during the surge. The cryptocurrency moved above the 61.8% Fibonacci retracement level, calculated from the previous swing high of $2.64 to the low of $1.899.
Trading indicators suggest continued bullish momentum, with the MACD showing positive movement in the bullish zone. The Relative Strength Index (RSI) remains above the 50 level, indicating healthy buying pressure in the market.
The surge erased earlier losses in XRP’s value, with the token maintaining strength above key support levels. Trading volumes increased notably during the price movement, suggesting genuine market interest in the development.
Market observers note that RLUSD enters a stablecoin market currently valued at approximately $200 billion. The sector is primarily dominated by established players Tether (USDT) and Circle’s USDC, but industry projections suggest substantial growth potential.
Ripple’s approach to launching RLUSD has emphasized regulatory compliance from the start. The company first unveiled its stablecoin plans in April, focusing on institutional adoption and integration with traditional financial systems.
The NYDFS approval opens the door for RLUSD’s public launch and upcoming exchange listings. The regulatory green light may help attract institutional players seeking regulated blockchain-based payment solutions.
Current market data shows support levels for XRP near $2.280 and $2.200, with resistance levels identified at $2.4750 and $2.6450. These technical levels may influence short-term price action as the market digests the news.
The price movement coincides with increased trading activity across major cryptocurrency exchanges. Market depth data indicates healthy liquidity for XRP trading pairs, supporting price stability at new levels.
Trading volume distribution shows balanced activity across global markets, with Asian and European sessions showing particular strength. The increased volume suggests broad-based participation in the price rally.
Chart patterns indicate the formation of higher lows, typically considered a bullish market structure. The price maintains position above the 100-hour Simple Moving Average, reinforcing the current upward trend.
Recent price action places XRP’s next technical resistance at $2.50, with potential for movement toward $2.550 if buying pressure continues. Support has formed around the $2.280 level, providing a foundation for current price levels.
