XRP (CRYPTO:XRP) became the best-performing large-cap Cryptocurrency on Monday following the launch of RLUSDa stablecoin of Ripple Labs backed by US dollars.
What happened
The payments-focused cryptocurrency rose 3.51% in the last 24 hours, outperforming the returns of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH).
With the latest push, XRP’s monthly gains soared 138%, the largest among cryptocurrencies in the top 10 by market capitalization.
The rally was likely driven by strong buying interest from whale investors. The renowned cryptocurrency analyst Ali Martinez noted that whales purchased more than 830 million XRP, worth more than $2 billion at current market prices.
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Whales have purchased over 830 million $XRP in the last 24 hours! pic.twitter.com/KzNds2CVdf
— Ali (@ali_charts) December 16, 2024
The readings of the moving averages supported the bullish potential of the currency. XRP price was higher than almost all of its exponential moving averages and simple moving averages, indicating that investors’ current expectations are higher than their average expectations over the past period.
However, the indicator Convergence and Divergence of Moving Averages (MACD), which compares two exponential moving averages, showed a ‘Sell’ signal.
He Buyer and Seller Strength indicatorused to measure the strength of buyers and sellers in the market, was at ‘Neutral’ at the time of publication.
Furthermore, XRP’s Open Interest, a measure of its speculative interest, increased by 5.26% in the last 24 hours and almost 450% since November 5, the day of the US presidential election, according to data from Coinglass.
Approximately 75% of all Binance traders with an open interest were long the asset, signaling the expectation of further upside.
Why is it important
The optimism around XRP is related to several factors, the most notable being the launch of RLUSD by Ripple, a payments company that uses XRP for its operations.
The president of Ripple, Monica Longsaid on Monday that the launch marks a new chapter for the XRP Ledger, the Blockchain technology that powers Ripple’s operations.
The release of RLUSD marks a new chapter – both for the XRP Ledger, as well as @Ripple for use in our $70B+ payment flows. Combining our 10+ years in the business; the rigor & compliance required with stablecoin issuance by a @NYDFS chartered company; and an experienced Advisory…
— Monica Long (@MonicaLongSF) December 16, 2024
Ripple plans to position RLUSD for a variety of financial applications, including cross-border instant settlements, Treasury operations, and integration with decentralized finance protocols.
Furthermore, with the end of the mandate of the president of the US Securities and Exchange Commission (SEC), Gary Genslerand being succeeded by the pro-cryptocurrency Paul Atkinsinvestors feel more confident about XRP.
Ripple has been locked in a nearly four-year legal battle with the SEC over the status of XRP, and any change in the agency’s top leadership is viewed with optimism.
XRP price movement
At press time, XRP was trading at $2.49, up 3.65% over the past 24 hours, according to data from Benzinga Pro.
Photo courtesy of Shutterstock
You can also read: Jim Cramer warns about Nvidia: Imminent correction after its 174% increase?
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