Why Is XRP Going Up: What RLUSD Approval Means for Ripple Prices
Why Is the Ripple (XRP) Price Up Today:What’s Fueling the Ripple Rally
Ripple’s Stablecoin RLUSD Secures Approval from NYDFS
Ripple's USD-pegged stablecoin, RLUSD, has received official approval from the New York State Department of Financial Services (NYDFS). Ripple's CEO, Brad Garlinghouse, shared the news on X (formerly Twitter), marking a significant regulatory milestone for the blockchain firm.
CPI Data Release and Its Impact on Crypto Markets
The U.S. Bureau of Labor Statistics is set to release November's Consumer Price Index (CPI) data at 8:30 a.m. ET (13:30 UTC). Federal Reserve Chair Jerome Powell has emphasized that upcoming economic indicators will heavily influence the Fed's decisions on interest rates. With inflation remaining a key concern in recent months, this announcement could significantly impact the cryptocurrency market in the coming year.
XRP Whale Activity Points to Short-Term Bearish Pressure
XRP whale activity has surged, with deposits to exchanges reaching a six-month high. Early Tuesday, more than 2.66 billion XRP tokens were moved to Binance over the past 30 days, as reported by CryptoQuant. This marks the largest movement since April 2024, suggesting potential short-term bearish pressure on XRP’s price.
XRP Futures Open Interest Surges to $3.30 Billion
The XRP futures market has seen a remarkable increase in open interest, hitting $3.30 billion on December 11, 2024. During this period, XRP's price rose to $2.37, reflecting increased trading activity and growing market interest. This surge highlights a significant spike compared to the relatively stable trends observed earlier in the year, indicating bullish sentiment or heightened speculation among traders.
XRP Liquidation Activity Shows Short Traders Facing Losses
Recent liquidation data reveals significant activity in XRP, with total liquidations amounting to $930.52K. A majority of these were short positions, totaling $900.95K, while long positions accounted for only $29.56K. This trend suggests that short sellers have faced substantial losses, hinting at a potential shift in XRP’s market dynamics and increased price volatility.
XRP Price Prediction: Bulls Defend Key Support Levels
After reaching a yearly high of $2.90 on December 3, XRP entered a corrective phase, forming a descending channel that brought the price down to $2 by December 9. However, on December 10, bulls defended the lower boundary of the channel, supported by the 38.20% Fibonacci level and the psychological support at $2.00. This move indicates strong buying interest near critical support levels.
What’s Next for Ripple XRP?
Following its rebound from the $1.96 support level, XRP has climbed back above the 23.6% Fibonacci retracement level. If the current uptrend continues, XRP could target the $2.58 resistance and potentially retest the psychological $3 level, which previously experienced heavy selling pressure. Investors should watch for price consolidation and volume spikes to assess the sustainability of this rally.
