XRP's bullish structure indicates $15 as the price stabilizes after the rally
XRP's notable six-week rally to nearly $3 has paused, with the cryptocurrency currently in a consolidation phase. However, technical patterns suggest the bullish momentum is not over yet, potentially driving XRP towards the $15 level.
The $XRP/USD pair dropped 18%, down to $2.30 on December 16th, after reaching a six-week high of $2.90 on December 3rd. Despite the correction, this pullback could be part of a healthy consolidation phase before a new rally.
The stablecoin RLUSD sparks optimism
One of the key factors driving XRP's rally is the growing anticipation surrounding the launch of RLUSD, a stablecoin pegged 1:1 to the US dollar. RLUSD will be integrated into both the XRP Ledger (XRPL) and Ethereum, backed by cash and US Treasury bonds.
Importantly, RLUSD will require XRP for transaction fees, driving utility and acceptance within the XRPL ecosystem. After receiving approval from the New York Department of Financial Services, RLUSD is poised to become a widely accepted payment tool, especially in emerging markets.
Georgios Vlachos, co-founder of Axelar, predicts that RLUSD will enhance the use of XRP as a global payment token by 2025. Axelar's platform also connects XRPL with 69 blockchains, ensuring broad interoperability.
However, Ripple's Chief Technology Officer, David Schwartz, has warned investors about short-term supply constraints and price volatility upon launch. He emphasized that pre-launch fees for the RLUSD token may reflect speculative interest rather than actual market value. Schwartz predicts the stablecoin's price will stabilize at $1 as supply and demand normalize.
The increase in open interest signals continued momentum
Investor enthusiasm for XRP remains strong, as reflected in the increase in open interest (OI) of futures contracts tracking XRP, reaching a record high on December 3rd. Higher open interest indicates that new capital is flowing into the market, a sign of increasing confidence among traders.
The combination of regulatory optimism, excitement around RLUSD, and market positioning has reinforced XRP's bullish narrative.
The bullish flag pattern indicates a move towards $15
Technically, XRP's current price action paints a classic bullish flag pattern—a continuation bullish pattern. This structure occurs when an asset consolidates within a downward sloping channel (the flag) after a significant rally (the flagpole). A breakout above the upper boundary of the flag often signals the continuation of the upward trend.
For XRP, the height of the previous flagpole indicates a bullish target of $15—a 520% increase from the current level.
If the pattern plays out as expected, XRP's recent consolidation phase will serve as a foundation for the next explosive move. Although short-term corrections are healthy, the upward momentum is directed towards the next key milestone.
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