Ripple’s XRP funding rate is not that high compared to previous bullish periods, despite rising 400% last month. RLUSD has yet to debut, despite rumors that it will be released on Wednesday. XRP is struggling to regain $2.58 as it heads toward an all-time high of $3.57.
XRP traded near $2.4 on Wednesday as Ripple Research revealed that the RLUSD stablecoin will not debut on the exchange, despite rumors of a launch among crypto community members. As XRP price plummets, on-chain data shows the remittance-based token still has the potential to resume its rise.
XRP could resume its rally as RLUSD launch gains attention
XRP posted double-digit losses on Wednesday, falling 11% despite rising 400% over the past month. This asset is one of the top trending altcoins and is at the forefront of the much-awaited altseason.
Despite the large rally, XRP funding rates remain somewhat stable compared to levels seen during the February 2024 bull market and the March 2021 bull market, according to Coinalyze data. .
XRP Funding Rate |Analyze Coin
Stable funding rates indicate that the market is not overly bullish and there is potential for further price increases, reducing the risk of overheating.
Similarly, XRP's weighted sentiment is also at lower levels compared to previous bull runs. This indicates that retail traders may not be the main driver of the asset's recent strong upward trend.
Panic FUD selling during market downturns is less likely when retailers are not the main driver of price increases.
XRP Weighted Sentiment | Santiment
As traders and investors anticipate a rebound in the XRP price, attention is also focused on the upcoming launch of the RLUSD stablecoin.
RLUSD is Ripple's stablecoin pegged to the US dollar and aims to provide users with a more stable trading asset. Major exchanges like Coinbase are already lining up to start issuing RLUSD to customers for trading.
Many members of the crypto community expected RLUSD to launch on Wednesday, but Ripple has clarified that the launch will not take place yet as important details are being finalized with the New York State Department of Financial Services. did.
Despite some speculation, $RLUSD It won't start today. We are aligned with NYDFS on final approval and will share updates as soon as possible.
We began our operations under the supervision of NYDFS and are committed to maintaining the highest regulatory standards. stay tuned…
— Ripple (@Ripple) December 4, 2024
XRP faces selling pressure near $2.58 as it heads for an all-time high of $3.57
According to data from Coinglass, XRP has fallen 11% with more than $34 million in liquidations in the past 24 hours. The liquidation includes $25.37 million from long positions and $8.75 million from short positions.
Since XRP fell below the $2.58 level on December 3, it has struggled to regain that level, meaning sellers are defending it.
XRP/USDT 4-hour chart
If the decline continues, support could be found near the 50-day simple moving average (SMA) at $1.96.
However, if XRP sustains the heavy movement above $2.58, it could rise to the upper bound of the major rectangular channel at $3.57 and set a new all-time high.
The Relative Strength Index (RSI) momentum indicator is trending down and testing the midline, indicating that bullish momentum is weakening.
This theory is invalidated if the closing price of the daily candlestick falls below $1.96.
