XRP has been making waves in the cryptocurrency market, recently pulling back after a remarkable 400% surge over the past month. Despite this correction, on-chain metrics and market sentiment suggest that the momentum behind Ripple’s native token may not be over just yet. With price action hovering near $2.4 and eyes turning toward key resistance levels, traders are watching closely for signs of a renewed rally.
XRP Shows Signs of Sustainable Momentum Despite Price Correction
On Wednesday, XRP experienced an 11% drop, bringing it down from recent highs. This pullback led to over $34 million in liquidations, with $25.37 million coming from long positions and $8.75 million from shorts, according to Coinglass data. However, what makes this correction different from past speculative spikes is the underlying market structure.
👉 Discover how on-chain trends are shaping the next phase of XRP’s price movement.
Unlike previous bull runs—such as those seen in February 2024 or March 2021—the current funding rate for XRP remains relatively stable. Data from Coinalyze shows that despite the sharp price increase, leveraged long positions haven’t spiked abnormally. A balanced funding rate suggests that the rally hasn’t been driven by excessive speculation, reducing the risk of a violent market crash due to margin calls or forced liquidations.
Additionally, sentiment analysis from Santiment reveals that XRP’s weighted sentiment is still at relatively low levels compared to prior rallies. This indicates that retail investors have not fully jumped into the market yet. When institutional or whale activity—not retail FOMO—drives price action, the market tends to be more resilient during downturns. The absence of widespread euphoria means there's less panic selling during corrections, allowing for healthier consolidation.
RLUSD Launch Delayed: Regulatory Compliance Takes Priority
One of the most anticipated developments in the Ripple ecosystem has been the launch of RLUSD, the company’s newly announced USD-pegged stablecoin. Rumors had circulated that RLUSD would debut on major exchanges by Wednesday, sparking excitement across the crypto community. However, Ripple Labs has since clarified that the launch is not imminent.
In an official tweet on December 4, 2024, Ripple stated:
Despite some speculation, $RLUSD isn’t launching today. We’re in lockstep with the NYDFS on final approval and will share updates as soon as possible.
We are fully committed to launching under the supervision of NYDFS and upholding the highest regulatory standards. Stay tuned…
This delay underscores Ripple’s ongoing commitment to regulatory compliance, especially following its high-profile legal battle with the U.S. Securities and Exchange Commission (SEC). By working closely with the New York State Department of Financial Services (NYDFS), Ripple aims to ensure RLUSD meets stringent financial regulations before going live.
Major platforms like Coinbase have already expressed interest in listing RLUSD, which could significantly boost liquidity and adoption once launched. The stablecoin is expected to enhance cross-border payment efficiency within RippleNet, further solidifying XRP’s role in global remittances.
👉 Learn how regulated stablecoins are transforming cross-border transactions.
Technical Outlook: Can XRP Break Toward $3.57?
From a technical perspective, XRP is currently facing strong resistance at $2.58—a level it failed to reclaim after dropping below it on December 3. Sellers appear to be defending this zone aggressively, preventing a swift recovery.
If bearish pressure continues, the next potential support lies around $1.96, coinciding with the 50-day Simple Moving Average (SMA). A daily candlestick close below this level could signal a deeper correction and invalidate the current bullish thesis.
However, if buyers regain control and push prices above $2.58 with strong volume, XRP could resume its upward trajectory toward $3.57—the upper boundary of a key rectangle pattern visible on the 4-hour chart. Breaking this level would mark a new all-time high and likely trigger renewed investor interest.
The Relative Strength Index (RSI) is currently trending downward and testing its midpoint (50), indicating weakening bullish momentum. While this doesn’t necessarily mean a reversal is imminent, it does suggest that upward acceleration may pause unless buying pressure increases.
Core Keywords Driving Market Interest
Key terms shaping discussion around XRP include:
- XRP price prediction
- Ripple RLUSD launch
- XRP technical analysis
- XRP vs Bitcoin
- XRP on-chain data
- Ripple regulatory update
- XRP all-time high
- cryptocurrency stablecoin news
These keywords reflect both speculative and fundamental interest in the asset, spanning technical traders, long-term investors, and those monitoring Ripple’s broader ecosystem development.
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Frequently Asked Questions (FAQs)
Q: Why did XRP drop 11% recently despite strong gains?
A: The decline followed profit-taking after a 400% rally over one month. Stable funding rates suggest the drop was part of a healthy correction rather than a collapse driven by leveraged positions.
Q: Is RLUSD launching soon?
A: No official launch date has been set. Ripple confirmed they are finalizing approvals with NYDFS and emphasized compliance over speed.
Q: What is XRP’s next major price target?
A: If XRP breaks above $2.58 with strong volume, the next target is $3.57—a potential new all-time high based on current chart patterns.
Q: How do macroeconomic factors affect XRP?
A: Like other risk assets, XRP can be influenced by U.S. Federal Reserve interest rate decisions. Rate cuts tend to weaken the U.S. dollar and boost crypto demand.
Q: Does low retail sentiment mean more upside for XRP?
A: Yes. When retail participation is low during a rally, it often indicates room for further price growth as more investors enter later.
Q: What role does on-chain data play in predicting XRP moves?
A: On-chain metrics such as wallet activity, transaction volume, and holder behavior help identify accumulation patterns and potential breakout signals before they appear on price charts.
Final Thoughts
While XRP faces short-term resistance and volatility, the fundamentals remain constructive. Regulatory diligence around RLUSD, combined with healthy on-chain dynamics and controlled leverage, sets the stage for a sustainable move higher—if momentum returns.
Traders should monitor the $2.58 resistance and $1.96 support levels closely. A breakout above resistance could open the path to $3.57, while a breakdown below support may lead to further consolidation.
As always in crypto markets, timing and risk management are crucial. With regulatory clarity improving and institutional interest growing, XRP continues to position itself as more than just a speculative asset—it’s becoming a key player in the future of digital finance.