XRP Price Prediction: Whales invest $500M as Ripple secures RLUSD approval in New York

XRP price analysis: 

XRP price reclaimed the $2.30 territory on December 11, as New York regulators approved Ripple RLUSD stablecoin launch on Tuesday. With whale investors spotted advancing a buying frenzy, XRP price could be on the verge of a $3 breakout in the days ahead.

XRP price reclaims $2.40 as New York regulator approves Ripple’s RLUSD Stablecoin

XRP price regained upward momentum on Tuesday after anxiety around geopolitical risks had triggered cascading liquidation worth over $1.5 billion across the cryptocurrency markets on December 10.

While the likes of Bitcoin (BTC) and Ethereum (ETH) struggle to reclaim the $100,000 and $4,000 resistance levels respectively, XRP has skipped ahead of the market trends briefly the $2.40 territory.

The XPPUSD daily chart above shows how XRP price rebounded 24.7% as is moved from $1.90 to reclaim the $2.41 level briefly on Tuesday, reversing majority of the 28.2% losses recorded during the market crash on December 10.

XRP’s market leading performance has been linked to the pivotal Ripple’s RLUSD stablecoin approval from the New York Department of Financial Services (NYDFS).

This move strengthens Ripple’s presence in the digital payments sector, marking a significant milestone for its XRP Ledger (XRPL) ecosystem. The RLUSD stablecoin, designed for regulated stable transactions, is Ripple’s latest innovation, aimed at enhancing its global payment network.

Over the last few years, Ripple has initiated pilot programs to integrate RLUSD with central bank digital currencies (CBDCs) and decentralized finance (DeFi) protocols. According the product documentation, the new RLUSD stablecoin provides enterprises solutions for tokenized asset settlements, further diversifying the XRPL’s use cases, potentially increasing network demand for the native XRP coin.

Whales invested $500M amid market crash

Asides from Ripple’s RLUSD stablecoin approval, XRP’s rapid rebound also appears to have been supported an unusual-buying frenzy observed among whale investors.

While the global crypto markets entered a tailspin on Monday, in reaction to geopolitical risks, on-chain data trends shows that whale investors capitalized on the falling prices to buy the dip, fueling market liquidity and nullified bearish sentiment.

The Santiment chart below monitors real-time changes in balances of whale wallets holding at least 1 million XRP coins.

The chart above shows that XRP price have been on a buying spree since mid-November when controversial SEC Chairman Gary Gensler confirmed his imminent exit. After a mild sell-off when XRP price topped out at $2.91 on December 4, crypto whales have capitalized on the ensuing market volatility to buy large amounts of XRP coins.

Since Dec 4, the whale cluster increased their balances from 4.58 billion XRP to hit 4.79 billion XRP at press time on Dec 11. Valued at current prices, this increase of 210 million XRP reflects that crypto whales invest another $494.2 million within the past week, capitalizing on the market volatility, and bullish sentiment surrounding the RLUSD stablecoin approval in New York.

When whale investors make surge large acquisition amid a market dip, the resultant market liquidity boost allows panic sellers to exit without causing major drag on prices. This partly explains why XRP price staged an early rebound above $2.40 on Tuesday while, outpacing other top-ranked assets like BTC, ETH.

XRP Price Forecast: $3 breakout ahead, if $2.60 resistance caves

XRP price appears poised for a bullish reversal towards $3 as technical indicators reflect improving market sentiment after the RLUSD stablecoin approval.

First, the Keltner Channels indicate that XRP faces significant resistance at $2.67. A decisive close above this level could confirm the start of a bullish continuation toward the psychological $3 milestone.

Further supporting the bullish case is the Bull-Bear Power (BBP) indicator, which has flipped green, showing stronger bullish pressure outweighing selling activity. This setup could attract strategic investors and short-term traders eyeing opportunities to capitalize on the upward trend.

However, on the downside, critical support levels to monitor include $2.03 and $1.41. A breach below $2.03 could invalidate the bullish thesis and expose XRP to further downside risk.

To stage the much-anticipated $3 price breakout, XRP needs consistent volume spikes, as seen during previous surges, which would validate strong market participation.