XRP Forms Bullish Continuation Pattern with Potential Target Above $15
XRP Consolidates After Rallying Toward $3
XRP’s recent pullback has created a classic bullish continuation structure, suggesting further upside potential. The XRP/USD pair dropped 2% to an intraday low of $2.30 on December 16, extending a corrective trend that began after reaching $2.90 on December 3. Despite the 18% decline from its recent peak, XRP has tripled in value over the past six weeks.
RLUSD Stablecoin Hype Drives XRP Adoption
XRP has gained significant attention due to its recent rally and developments within the XRP Ledger (XRPL) ecosystem, particularly the upcoming launch of the RLUSD stablecoin.
Pegged 1:1 to the US dollar and backed by cash reserves and US treasury bills, RLUSD will launch on XRPL and Ethereum blockchains, requiring XRP for transaction fees. Approved by the New York Department of Financial Services, RLUSD aims to facilitate transactions and savings in emerging markets, boosting XRP’s adoption as a payment token by 2025.
According to Axelar co-founder Georgios Vlachos, RLUSD’s integration with XRPL and its interoperability with 69 blockchains will significantly enhance XRP’s utility. However, Ripple’s CTO, David Schwartz, cautioned investors about potential supply shortages and price volatility during RLUSD’s launch phase.
Schwartz explained that pre-launch bidding on RLUSD likely reflects novelty-driven demand rather than actual market value. Once supply stabilizes, the stablecoin is expected to return to its intended $1 parity.
XRP Futures Open Interest Hits Record Highs
Expectations of crypto-friendly policies under Trump’s administration and the RLUSD launch have fueled a surge in XRP-tracked futures. Open interest (OI) reached record levels on December 3, signaling strong market sentiment and potential for further price growth.
Higher OI indicates increased capital flowing into the market, enhancing the likelihood of the prevailing trend continuing.
Bull Flag Pattern Targets $15 for XRP
Despite the recent price correction, XRP is positioned to resume its bullish momentum, forming a textbook “bull flag” pattern. This technical structure occurs when a sharp upward move (flagpole) is followed by a consolidation phase in a descending channel (flag).
XRP’s current price action has created this pattern, as seen in the chart. The height of the flagpole suggests a target price of $15, representing a 520% increase from current levels.
While short-term fluctuations are possible, XRP’s strong technical setup and market developments point to significant upside potential in the months ahead.
