XRP price rises as RLUSD stablecoin surpasses PYUSD on a key metric

XRP’s price has been on an upward trajectory, reaching its highest level in over a month, driven by a broader recovery in the cryptocurrency market. Ripple’s token climbed to $2.60, continuing a rally that began on December 30 when it hit a low of $2, a level that many considered psychologically significant. This rise is also tied to the growing adoption of Ripple’s USD stablecoin, RLUSD.

RLUSD has shown notable progress, surpassing $72 million in assets and recording a 24-hour trading volume of $162 million, which places it among the top stablecoins in the market. CoinGecko’s data shows that RLUSD is now the sixth-most traded stablecoin, surpassing competitors such as Justin Sun’s USDD, Frax, and PayPal’s PYUSD, which had a significantly lower 24-hour volume of just $22 million. However, RLUSD faces stiff competition from well-established stablecoins like Tether (USDT) and USD Coin (USDC), which dominate the market with volumes of $74 billion and $6.7 billion, respectively.

XRP’s price surge is also fueled by the increased interest in Ripple-related meme coins, including recently launched tokens like Pongo, XRP Army, PHNIX, and Britto. These developments have been seen as positive for the Ripple network, which had previously faced criticism as a “ghost chain” due to limited activity.

The rise in XRP’s price comes at a time when investors are speculating that Ripple could benefit from a shift in regulatory stance following Donald Trump’s upcoming inauguration. Crypto investors believe that changes at the Securities Exchange Commission (SEC) could be favorable for Ripple, with a 58% chance of a spot XRP ETF being approved by 2025, according to Polymarket.

From a technical perspective, XRP has seen three consecutive days of growth, even while other cryptocurrencies have experienced downturns. The recovery began after the coin touched the $2 mark, the lower boundary of a symmetrical triangle formation, which is seen as a bullish pennant pattern. Additionally, XRP formed a break-and-retest pattern by dipping to a key support level of $1.9660, its previous all-time high, which is a common indicator of a continuation rally.

XRP continues to trade above all major moving averages, signaling continued bullish momentum. The next significant resistance level to watch is $2.9150, which could be the next target for the ongoing rally.