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XRP Defies the Crypto Market’s Downtrend with a 6.7% Surge
Amidst a largely subdued crypto market, XRP has demonstrated remarkable resilience by surging 6.7% in the last 24 hours. The asset rebounded from a dip to $1.90 on December 10 and is now trading above $2.36, defying the overall bearish sentiment that has overshadowed the altcoin sector.
While most altcoins have experienced losses or stagnation during this period, and Bitcoin recorded a modest gain of only 0.7%, XRP’s recent outperformance stands out significantly. This begs the question: why is XRP outperforming the broader crypto market?
Imminent Launch of Ripple’s Stablecoin RLUSD
A primary catalyst for XRP’s rally appears to be the impending launch of Ripple’s much-anticipated stablecoin, RLUSD. Ripple CEO Brad Garlinghouse recently announced via social media platform X that RLUSD has secured a crucial 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.”
Currently in beta testing on both the Ethereum network and the XRP Ledger (XRPL), RLUSD has generated excitement within the XRP community. Enthusiasts speculate that the stablecoin’s introduction could enhance liquidity and utility for XRP, contributing to a surge in speculative interest and the phenomenon known as “FOMO” (fear of missing out).
Strong XRP On-Chain Activity
On-chain analysis from Santiment reveals encouraging metrics for XRP. The analytics firm noted that the “Mean Dollar Invested Age is flashing a bullish signal,” indicating that younger coin age distributions often precede continued rallies.
Santiment reports that the Mean Age of investment for XRP is 865 days, marking a 22% decrease in just 14 weeks. This indicates an increase in activity on the XRP network, with historical patterns suggesting that the current trend is unlikely to reverse until these indicators start showing signs of aging.
“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.
Whales Buy the Dip Amid Bullish Technical Setup
From a technical standpoint, the XRP price structure remains extremely bullish on higher time frames. On the daily chart, XRP managed to hold support above the April 2021 high of $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, large investors, known as whales, recognized the opportunity and bought the retracement. Crypto analyst Ali Martinez noted via X: “In the recent dip, whales bought over 100 million XRP!”
As XRP continues to capture attention with its impressive performance, it remains a key player to watch in the evolving crypto landscape.
