Ripple’s XRP has seen a significant price surge, becoming one of the best-performing large-cap cryptocurrencies in the market. The token rose by over 12% after Ripple announced plans to launch its RLUSD stablecoin on Dec. 17.
The launch follows months of regulatory review and approval from New York authorities. Ripple aims for RLUSD to become a significant player in the stablecoin industry with enterprise-grade solutions, complementing XRP to boost cross-border transaction volumes.
However, there are substantial risks ahead. Stablecoins have struggled to gain traction in the past, with some failing to gain popularity despite being launched by big companies. Examples include Justin Sun’s USDD and PayPal USD.
On the other hand, Tether (USDT) has continued to grow its market share, becoming the most used stablecoin in the industry. The XRP price chart also points to potential risks, including a developing double-top pattern at $2.90 and mean reversion, where the price falls back toward key moving averages.
A move above the double-top resistance at $2.90 could propel XRP toward the $5 level, while a reversal is possible if users sell the news after the RLUSD launch.
Source: https://crypto.news/xrp-price-rises-ahead-of-rlusd-launch-but-a-reversal-is-possible