XRP price continued with its ascent on Tuesday, gaining 2.1% at the time of writing to trade at $2.53. The crypto coin has been on an ascending trajectory in the last week, with its gains at 14.4% during that period. Stability above the $2.5 mark is significant as the coin attempts another move on the all-time high price of $3.40 set seven years ago.
RLUSD launch propels XRP price
The current propulsion on XRP price is attributed to two key factors. First, Bitcoin’s rise to new record highs has set a bullish tone across the broader cryptocurrency market. Secondly, XRP has an asset-specific bullish upturn courtesy of Ripple Labs’ launch of RLUSD stablecoin.
XRP issuer, Ripple Labs, announced on Monday the launch of its much-awaited stablecoin, RLUSD, following approval by the New York Department of Financial Services (NYDFS). The stablecoin will be available starting today, with listings on CoinMENA, Uphold, MoonPay, Bitso and Archax.
The RLUSD stablecoin is pegged 1:1 with the US dollar, with its reserve backed by USD cash and US treasury bills. XRP price could be boosted significantly by the launch, as the coin will be used to pay for transaction fees. Also, RLUSD will boost XRP liquidity while offering stability which will reduce volatility. That could increase the demand for XRP among institutions, hence boost the demand.
Open Interest data signal further XRP price upside
As of this writing, XRP’s the value of perpetual contracts rose by 10.9% to $2.9 billion in the last 24 hours. Also, Coinanalyze reports that the value of futures contracts rose by 8% within the same time frame. That signals growing investor confidence in XRP price upside potential.
XRP price prediction
Pivot: The pivot is at $2.48. The RSI momentum indicator signals bullish control. A break below that level will shift the momentum to the downside.
Resistance: The first resistance is likely to be at $2.55. A break past that level will open the path to test $2.60.
Support: Initial support is likely to be at $2.45. A break below that level will invalidate the upside narrative. Extended control by the sellers could lead to a further decline to test $2.43.
