• Ripple’s XRP funding rate, despite a 400% increase last month, is not very high compared to previous bullish seasons.
• RLUSD is yet to debut despite rumors of a supposed launch on Wednesday.
• XRP is struggling to reclaim $2.58 as it looks for a new all-time high of $3.57.

XRP was trading at around $2.4 on Wednesday as Ripple Labs clarified that its RLUSD stablecoin will not launch on exchanges despite rumors of its launch among members of the crypto community. Given the sharp decline in XRP price, on-chain data shows that the remittance-based token still has the potential to extend its rally.

XRP could continue its rally as attention turns to RLUSD launch

XRP posted double-digit losses on Wednesday, falling 11% despite gaining 400% over the past month. The asset was among the top-trending altcoins and pioneered the highly anticipated altcoin season.

Despite the massive increase, XRP’s funding rate remains reasonably stable compared to levels during the February 2024 rally and the March 2021 bull market, according to Coinalyze data.

XRP funding rates | Coinanalyze

A stable funding rate indicates that the market is not overly optimistic and that there is potential for further price increases, reducing the risk of overheating.

Likewise, XRP’s weighted sentiment is at low levels compared to previous rallies. This suggests that retail traders may not be the main factor behind the asset’s recent strong uptrend.

When retail traders are not the primary factor driving a price increase, the potential for panicked FUD selling during market downturns is reduced.

XRP Weighted Sentiment | Santiment

As traders and investors expect the XRP price to recover, attention is also turning to the upcoming launch of the RLUSD stablecoin.

RLUSD is Ripple’s US dollar-pegged stablecoin and aims to provide users with more stable transaction assets. Major exchanges like Coinbase are already lining up to start issuing RLUSD to customers for trading.

While most members of the crypto community expected RLUSD to launch on Wednesday, Ripple clarified that the launch is not happening yet as key details are being finalized with the New York State Department of Financial Services.

XRP is looking for a new all-time high at $3.57 and is facing selling pressure near $2.58

According to Coinglass data, XRP fell by 11%, resulting in over $34 million in liquidations in the last 24 hours. The liquidations included $25.37 million from long positions and $8.75 million from short positions.

After falling below this level on December 3, XRP struggled to reclaim the $2.58 mark, meaning sellers are defending this level.

XRP/USDT 4-hour chart

If the decline continues, it could find support near the 50-day Simple Moving Average (SMA) at $1.96.

However, if XRP maintains a high volume increase above $2.58, it could rise to the top of a key rectangular channel at $3.57 and set a new all-time high.

The Relative Strength Index (RSI) momentum indicator is trending downward and testing its midline, suggesting a weakening of bullish momentum.

A daily candlestick closing price below $1.96 would invalidate this thesis.

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