XRP Price Defies Bearish Crypto Trend, Rallies 6%: Key Drivers Revealed
December 11 2024 - 12:00PM
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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, XRP’s recent outperformance
stands out as a clear anomaly. So, why Is XRP outperforming the
crypto market? #1 Imminent Launch Of Ripple’s Stablecoin RLUSD A
key catalyst behind XRP’s rally appears to be the imminent launch
of Ripple’s long-discussed stablecoin, RLUSD. Yesterday, Ripple CEO
Brad Garlinghouse confirmed via X that RLUSD had secured a pivotal
regulatory approval. He stated: “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.” Related Reading: Analyst Sets $4.40 XRP Target
As 3rd-Straight Bull Pennant Forms 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
stablecoin’s 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. Related Reading: Weekly Bull Flag Appears On XRP Price
Chart, Why A Double-Digit Is Still Feasible “This is one of the key
indicators throughout the history of each coin’s 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 Setup From 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!” Featured image created with DALL.E, chart from
TradingView.com
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