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In a remarkable show of resilience amid a bearish crypto market, XRP is up 6.7% in the past 24 hours. Following a dip as low as $1.90 on December 10, the asset is now trading above $2.36, defying the bearish sentiment that grips the altcoin sector.
Although many altcoins posted losses or traded sideways during the same period, and Bitcoin registered a small gain of only 0.7%, XRP’s recent outperformance is seen as a clear anomaly. So, why is XRP outperforming the crypto market?
#1 Imminent Launch of Ripple’s Stablecoin RLUSD
The main catalyst behind XRP’s rally seems to be the imminent launch of Ripple’s long-discussed stablecoin, RLUSD. Yesterday, Ripple’s CEO Brad Garlinghouse confirmed with X that RLUSD has received key regulatory approvals. He said: “This is new…we have final approval from NYDFS for RLUSD! Our partner listing will be live soon – and a reminder: when RLUSD goes live, you’ll hear it on Ripple first.”
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RLUSD, currently in beta testing on both the Ethereum network and the XRP Ledger (XRPL), has sparked excitement among the XRP community. Members think that the introduction of a stablecoin may cause an increase in liquidity and the use of XRP, and the expectation may contribute to the growth of speculative interest and the so-called “FOMO” (fear of missing out).
#2 Strong XRP On-Chain Activity
On-chain analysis from Sentiment points to encouraging metrics for XRP. The firm noted that “Mean Dollar Invested Age illuminates a bullish signal,” highlighting that small coin distributions often precede sustained rallies.
According to Santiment, the Mean Investment Age of XRP is 865 days (22% less than 14 weeks). Thus, activity on the XRP network is increasing, with similar historical patterns that do not reverse until these key indicators begin to reverse.
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“This is one of the most important indicators in the life history of each coin that helps ensure that the bull market can and should continue. The 2017 and 2021 bull markets similarly didn’t stop until the fortunes’ mean years began to ‘ascend’ (grow) again. Although short-term price volatility may continue to be expected, consider this a very important form of confidence if you remain strong in market prices over the long term,” said Santiment.
#3 Whales Buy Dip Amid Bullish Technical Setup
From a technical point of view, XRP price structure remains very cheap in high time frames. On the daily chart, XRP managed to hold support above the April 2021 high at $1.96, and is quickly rising towards the 1.272 Fibonacci retracement level near $2.42, where it is currently hovering. A sustained break above $2.42 could strengthen the bullish narrative.
Significantly, the whales saw an opportunity and bought the recall. Crypto analyst Ali Martinez commented on X: “In recent deeps, whales bought over 100 million XRP!”
The featured image was created with DALL.E, a chart from TradingView.com
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