Ripple's RLUSD Approval Boosts XRP: Whale Activity and Market Strategies Unveiled

Ripple's RLUSD Stablecoin Approval

Ripple's RLUSD stablecoin has received approval from the New York State Department of Financial Services, marking a significant milestone for the company. The stablecoin is pegged 1:1 to the US dollar and is backed by a combination of cash and government securities. Ripple aims to compete with established stablecoins like Tether (USDT) and USD Coin (USDC) by integrating RLUSD with major crypto exchanges. Following this announcement, XRP's price jumped nearly 7%, indicating positive investor sentiment. Ripple plans to keep the market informed about RLUSD's availability and ensure transparency through regular audits.

Increased Whale Activity in XRP

This month, Ripple has seen significant activity from large investors (whales) surrounding its XRP token, especially after the approval of the RLUSD stablecoin. Between December 4 and 7, XRP whales purchased about 120 million XRP, worth approximately $288 million, after the price dropped from $2.90 to $2.22. Consequently, whale holdings increased from 4.58 billion XRP to 4.79 billion XRP in just over a week, demonstrating strong confidence in XRP’s future. Overall, this whale activity highlights continued interest in Ripple amid changing market conditions.

Current Market Performance of XRP

XRPUSD has retraced more than 30% after a remarkable jump of over 400% following Trump's election as US President. It hit a low of $1.890 and is currently trading around $2.36. A daily close below $1.60 would signal a further minor bearish trend. However, XRP remains above both short-term (34 EMA and 55 EMA) and long-term moving averages (200-day EMA) on the 4-hour chart, indicating some stability.

Resistance and Support Levels

The immediate resistance level for XRP is around $3; a breakout above this level could push prices higher. If it surpasses $3.30, a significant bullish trend may develop, potentially leading to targets of $4 or $5. On the downside, immediate support is at $2.50, with further targets at $2.20, $2.00, $1.60, $1.27, $1.00, $0.85, and $0.74. Market indicators such as the Directional Movement Index and CCI (50) are currently bullish.

Suggested Trading Strategy

Given the current market conditions, it may be wise to buy on dips around $2, setting a stop-loss at $1.60 and targeting a profit at $3.30. This strategy allows traders to take advantage of potential upward movements while effectively managing risk.