XRP Price Outlook: What’s Next as Hoskinson Shows Support for Ripple's RLUSD Stablecoin

Ripple’s XRP has been holding steady near its highest price this year, thanks to growing anticipation surrounding the launch of Ripple's RLUSD stablecoin.

As of Wednesday morning, XRP was trading at $2.55, just shy of its year-to-date high of $2.90, a level that has attracted significant attention from traders and investors alike.

In a tweet on December 4, Charles Hoskinson, founder of Cardano, expressed his excitement about the upcoming RLUSD stablecoin launch. His post, which linked to an article detailing the stablecoin, has sparked speculation that Cardano may be open to hosting RLUSD on its blockchain. Given that Cardano's current stablecoin ecosystem is valued at just $24 million, the introduction of RLUSD could help boost its presence in the stablecoin space.

This move would be significant, especially considering that stablecoins like Tether (USDT) and USD Coin (USDC) currently dominate the market.

RLUSD, backed 1:1 by the US dollar, is designed to compete with leading stablecoins such as Tether, which holds a market dominance of around 70%. RLUSD will initially launch on the Ethereum and XRP Ledger blockchains, with future plans to expand across various platforms.

However, RLUSD faces stiff competition. Even PayPal’s PYUSD, despite the brand’s global recognition, has only managed to gather $495 million in assets so far, highlighting the challenges of gaining traction in the competitive stablecoin market.

XRP Price Surge Amid Regulatory Shifts

The RLUSD launch coincides with a strong resurgence in XRP’s price, which has seen a remarkable recovery of over 400% from its lowest point this year. XRP’s recent rally has been fueled not only by growing market sentiment but also by expectations of changes in the U.S. Securities and Exchange Commission (SEC). Gary Gensler, the SEC chairman who has clashed with Ripple Labs for the past four years, is expected to step down in January, potentially easing regulatory pressures on Ripple. In addition, rumors are swirling that Donald Trump may appoint Paul Atkins, a crypto-friendly regulator, as the new SEC head. If confirmed, such a move could pave the way for the approval of a spot XRP ETF by 2025, creating a more favorable regulatory environment for the token.

XRP Price Analysis and Future Potential

XRP’s price chart shows a strong upward trend. The token has successfully broken through key resistance levels at $1 and $2, and now appears poised to challenge the $3 mark. With XRP remaining above all major moving averages and indicators like the Relative Strength Index (RSI) and the MACD in overbought territory, there is a strong case for further upward momentum. The formation of a bullish pennant chart pattern adds to the bullish outlook, suggesting that XRP could continue to rise in the near term.

However, there is also a risk of a pullback. As XRP enters the markdown phase of the Wyckoff Method, there could be a temporary dip, potentially bringing the price down to around $1.50 before any further gains.

Conclusion

With the launch of RLUSD and the potential shift in regulatory dynamics, XRP is set to remain a major player in the cryptocurrency market. Investors and traders will closely monitor these developments, as they could have significant implications for the price of XRP in the coming months. Whether XRP can maintain its momentum or face a brief correction remains to be seen, but the future looks promising as Ripple continues to innovate within the crypto space.