XRP Price News: Ripple Eyes $3.4 Breakout as RLUSD Market Cap Soars Past $600M

XRP (XRP) has been recovering progressively from its weekend drop and is now retesting the $3.3 area while trading volumes reflect that this is a heavily contested zone for market participants.

The native asset of Ripple has experienced a 14% increase in trading activity in the spot market in the past 24 hours.

Meanwhile, in the futures market, open interest has also been rising, moving from a recent low of $7 billion to $8.3 billion as of today. This indicates that traders are jumping back on the market after this brief pullback.

Just 6 days ago, the U.S. Securities and Exchange Commission (SEC) published an official litigation release “that dismisses the Commission’s appeal and Ripple’s cross-appeal pending in the United States Court of Appeals for the Second Circuit, and resolves the Commission’s civil enforcement action against Defendants.”

This marked the official end of the company’s long-standing rift with the regulatory agency.

RLUSD’s Market Cap Grew by 50% Since the Beginning of June

Ecosystem growth is a key piece of the puzzle when it comes to pushing XRP to higher highs. The launch of Ripple USD (RLUSD) marked a pivotal moment for the network as this is the first native stable asset launched by the project.

Ripple USD (RLUSD) Market Cap – Source: CoinMarketCap

This dollar-pegged token can now be used by corporations and retail users to send money overseas through the Ripple network without exposing their remittances to the natural volatility of regular cryptos.

The market cap of RLUSD has been steadily increasing since its launch in December last year. At the time of writing, $640 million worth of the token is currently in circulation. This represents a 50% jump in just two and a half months.

The passing of the Genius Act in the United States could pave the way for the beginning of a new chapter for RLUSD as Ripple now has a free runway to collaborate with payments platforms that could offer the token as a decentralized and cheap alternative to make daily purchases and send international remittances.

Bullish Breakout Above $3.4 Would Confirm Upcoming Surge

XRP’s 4-hour chart shows how relevant this price zone is as the token has already retreated right after touching it on various occasions.

XRP/USD 4-Hour Chart (Bitstamp) – Source: TradingView

However, the token’s outlook is still positive as XRP broke above its descending price channel. Despite this recent volatility, XRP is still on an uptrend and it seems to be just a matter of time for a retest of the $3.65 level.

A clean breakout above $3.4 would confirm a short-term bullish outlook and would set the course toward our long-standing target of $4 we shared in a recent XRP price prediction.

The approval of an XRP spot exchange-traded fund (ETF) could provide the necessary fuel for this big next leg up.

Moreover, the White House’s recent executive order prompting the Labor and Treasury Secretaries to make crypto available for 401(k) retirement accounts should drive significant liquidity to the entire market.

Since XRP has been a favorite among retail investors for years, we could expect that, once this policy is fully implemented, the token will receive a big boost.