The XRP price has held steady in the past few days as traders anticipated the upcoming launch of the RLUSD stablecoin. Ripple, the third-biggest cryptocurrency in the industry, was trading at $2.41, up by over 27% from its lowest point this month.
XRP price technicals point to more gains
Technicals point to the XRP coin entering beast mode in the next few days. On the daily chart, we see that the coin has moved slightly above the 23.6% Fibonacci Retracement level at $2.3287.
The XRP price has also remained significantly above the 50-day and 100-day moving averages, a sign that the bullish trend is intact.
Most importantly, signs indicate the coin has formed a bullish flag pattern. This pattern is made up of a long vertical line shown in blue and a falling rectangle pattern. A bullish flag is one of the most popular bullish continuation signs in the market.
The length of the flag pole often determines the size of the breakout. Therefore, since this pole is about 480% tall, there are rising odds that the breakout will be strong. If this happens, the initial level to watch will be the year-to-date high of $2.90, which the psychological point at $3 will follow.
In the long term, Ripple will likely rally to $5, as long as the crypto bull run continues. However, a drop below this month’s low of $1.9686 will invalidate the bullish view.
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Ripple has strong fundamentals
In addition to strong technicals, the XRP price rally will be driven by strong fundamentals. The most important one will be the upcoming launch of the RLUSD, a stablecoin that aims to be a better alternative to Tether and USD Coin.
The RLUSD stablecoin’s main advantage is that it is regulated by American regulators, meaning that its proof of reserves will be accurate. This is unlike Tether, which is often criticized for its opaqueness.
In a statement last week, Brad Garlinghouse, Ripple Labs’ CEO said that the RLUSD had received final approval by the New York Financial Services Department and that the launch would happen soon.
The other top fundamental is that XRP whales have been buying the coin. In a recent post, CryptoQuant noted that whale activity was at an all-time high, which is a positive thing for the coin. Whales refer to the biggest holders of a coin.
Meanwhile, Ripple has the potential to become a big competitor to Ethereum and Solana, the two biggest blockchains in the industry. It runs XRP Ledger, which could start gaining traction in the coming months.
Further, there are rising odds that we will see a XRP ETF in 2025. WisdomTree, a leading fund manager with over $100 billion in assets under management, has already filed for a XRP ETF. Wth Ethereum ETF seeing inflows, chances are that other firms will apply for a Ripple – and Solana ETF.
Read more: XRP Price Could Surge to $48: Popular Crypto Pundit Predicts
