Ripple CEO stated that the RLUSD stablecoin has received final approval from NYDFS. Whales transferred over 2.66 billion XRP tokens to Binance last month. XRP could retest the $3 psychological level after rallying nearly 7% following Ripple’s announcement.
Ripple CEO Brad Garlinghouse announced on Tuesday that the company has received the green light from the New York Department of Financial Services (NYDFS) to launch its stablecoin RLUSD. Despite on-chain data showing a huge supply pool flooding the Binance exchange, XRP rose nearly 7% after the announcement.
RLUSD goes live after New York regulatory approval, whale supply hits Binance
Ripple's stablecoin RLUSD has been approved for listing by the NYDFS, nearly a week after rumors of an official launch, CEO Brad Garlinghouse announced on Tuesday's X Post. This approval confirms that RLUSD can operate on major exchanges.
RLUSD is a stablecoin designed to maintain a 1:1 price peg with the US dollar. Similar to popular stablecoins such as USDT and USDC, Ripple claims that RLUSD is backed by physical US dollar deposits, short-term government bonds, and other cash equivalents.
This has just received final approval from… @NYDFS for $RLUSD! The list of exchanges and partners will be published soon – and a reminder: Once RLUSD is published, you will receive the following message: @ripple beginning.
— Brad Garlinghouse (@bgarlinghouse) December 10, 2024
Ripple first announced RLUSD in April and then began beta testing the XRP Ledger and Ethereum blockchain platforms in August.
In October, Ripple announced Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish as exchange partners for the launch of RLUSD.
In addition, liquidity support will also be provided by market makers B2C2 and Keyrock. This cooperation aims to ensure the availability and efficiency of stablecoins in the market.
Some cryptocurrency community members have expressed that the launch of RLUSD will create some tailwinds for XRP, especially as RLUSD will provide Ripple with a less volatile asset to enhance its remittance and payment services. This is because it will become a big deal.
Following the RLUSD approval, XRP has surged more than 7% from its lows of $1.90. The recent recovery could be attributed to strong selling pressure from several whales and comes after more than a week of declines.
Last month, whales moved more than 2.66 billion XRP tokens to the Binance exchange, the highest amount since April 2024, according to CryptoQuant data. This indicates potential sales activity by these large holders.
XRP Whale Transfer Flow (Binance) | CryptoQuant
However, Binance's overall exchange reserves plummeted by 320 million XRP during the same period. This indicates that bulls absorbed potential sales activity from these whales.
XRP Exchange Reserve (Binance) | CryptoQuant
Additionally, popular trader Ash Crypto shared that XRP's large price fluctuations (up or down) over the past month are mainly due to its thin liquidity despite its high market capitalization. did.
XRP Could Retest the $3 Psychological Level Following Recent Rise
According to data from Coinglass, XRP has seen over $50 million in liquidations in the past 24 hours, with liquidated long and short positions accounting for $31.2 million and $18.97 million, respectively.
After bouncing off the support level near $1.96, XRP has risen above the 23.6% Fibonacci retracement. If XRP maintains its recent uptrend, it could regain the $2.58 level and retest the resistance near the psychological level of $3, where there was strong selling pressure earlier.
XRP/USDT daily chart
For XRP to continue rising, it needs to maintain an uptrend above $1.96.
The Relative Strength Index (RSI) and Awesome Oscillator momentum indicators are above the neutral level but are trending down, indicating that the bullish momentum is weakening.
If the daily candlestick closes below $1.35, this theory is invalidated.
