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

XRP price continued to rise and reached its highest level in more than a month as cryptocurrencies rebounded.

Ripple (XRP) climbed to $2.60, continuing the recovery that began when it dropped to the psychologically important level of $2 on December 30.

One of the catalysts for XRP’s rise is the gradual growth of Ripple’s USD stablecoin (RLUSD), which currently attracts over $72 million in assets.

There are signs that RLUSD usage is increasing, with 24-hour trading volume reaching $162 million, according to CoinGecko. This volume makes RLUSD the sixth most used stablecoin in the crypto market.

RLUSD has outperformed other popular stablecoins, including Justin Sun’s USDD, Frax, and PayPal’s PYUSD. In particular, the 24-hour volume of PYUSD, which has a market value of 534 million dollars, was recorded as only 22 million dollars.

However, RLUSD faces stiff competition from major stablecoins such as Tether (USDT) and USD Coin, whose 24-hour volumes are $74 billion and $6.7 billion respectively.

XRP’s rally coincided with increased investor demand for Ripple meme coins. This week’s top performers included newly launched tokens like Pongo, XRP Army, PHNIX, and Britto.

The growth of RLUSD and the performance of Ripple meme coins have helped increase the utility of the Ripple network, which has been criticized as a “ghost chain” in the past.

As Donald Trump’s inauguration approaches, the XRP price may continue to rise in the coming days. Crypto investors see Ripple as one of the biggest beneficiaries of this launch, as it will lead to significant changes at the Securities Exchange Commission. For example, Polymarket users gave the agency a 58% chance of approving a spot XRP ETF in 2025.

XRP price analysis XRP chart | Source: crypto.news

The weekly chart shows that XRP has risen for three consecutive days even as other cryptocurrencies have fallen. The recovery began with the cryptocurrency falling to the psychological level of $2, which forms the lower boundary of a symmetrical triangle. This formation is part of a bullish pennant formation.

XRP also formed a breakout-retest pattern, falling back to the key support level of $1.9660, the previous all-time high. This formation is widely seen as a continuation signal of the rise.

XRP remains above all major moving averages, indicating continued bullish momentum. The next important resistance level to watch is $2.9150, which could be the next target of the ongoing rally.