XRP Price Defies Bearish Crypto Trend, Rallies 6%: Key Drivers Revealed
In a notable display of resilience amidst a broadly subdued crypto market, XRP has surged 6.7% in the last 24 hours. Following a dip to as low as $1.90 on December 10, the asset is once again trading above $2.36, defying the predominantly bearish sentiment that has taken hold of the altcoin sector.
While most altcoins have posted losses or traded sideways over the same period, and Bitcoin has registered only a modest 0.7% gain, XRPs recent outperformance stands out as a clear anomaly. So, why Is XRP outperforming the crypto market?
#1 Imminent Launch Of Ripples Stablecoin RLUSD
A key catalyst behind XRPs rally appears to be the imminent launch of Ripples long-discussed stablecoin, RLUSD. Yesterday, Ripple CEO Brad Garlinghouse confirmed via X that RLUSD had secured a pivotal regulatory approval. He stated: This just inwe have final approval from NYDFS for RLUSD! Exchange and partner listings will be live soon and reminder: when RLUSD is live, youll hear it from Ripple first.
RLUSD, currently in beta testing on both the Ethereum network and the XRP Ledger (XRPL), has sparked enthusiasm within the XRP community. Members speculate that the stablecoins introduction could catalyze increased liquidity and utility for XRP, and the anticipation may be contributing to a surge in speculative interest and so-called FOMO (fear of missing out).
#2 Strong XRP On-Chain Activity
On-chain analysis from Santiment points to encouraging metrics for XRP. The firm noted that Mean Dollar Invested Age is flashing a bullish signal, highlighting that younger coin age distributions often precede continued rallies.
According to Santiment, the Mean Age of investment for XRP is 865 days (22% younger in 14 weeks). Thus, activity on the XRP network is increasing, with historically similar patterns not reversing until these key indicators start reversing.
This is one of the key indicators throughout the history of each coins lifespan that helps validate that a bull market can and should continue. The 2017 and 2021 bull markets similarly did not come to a halt until assets mean ages started going up (getting older) again. Though short-term price volatility can continue to be expected, consider this a very valuable bode of confidence if you remain bullish on market prices in the mid and long term, Santiment states.
#3 Whales Buy The Dip Amid Bullish Technical SetupFrom a technical perspective, the XRP price structure remains extremely bullish on the higher time frames. On the daily chart, XRP managed to hold support above the April 2021 high at $1.96, rebounding swiftly towards the 1.272 Fibonacci extension level near $2.42, where it currently hovers. A sustained break above $2.42 could further reinforce the bullish narrative.
Notably, whales recognized the chance and bought the retracement. Crypto analyst Ali Martinez noted via X: In the recent dip, whales bought over 100 million XRP!
Read more: https://www.newsbtc.com/xrp-news/xrp-price-defies-bearish-crypto-trend/
Text source: NewsBTC
