American Fintech Firm Ripple Will Launch Its Highly-Anticipated Stablecoin, RLUSD, on Tuesday

This has created a bullish atmosphere for the XRP token surging more than 15% in the past week and 2.60% in the past 24 hours alone

American fintech firm Ripple (CRYPTO: XRP) is all set to launch its much-anticipated stablecoin, RLUSD, on Tuesday.

The launch has already created a bullish atmosphere for the XRP token, which surged more than 15% over the past week and 2.60% in the past 24 hours alone, nearing the $2.50 price level.

With the stablecoin launch, XRP could be driven towards $3 soon.

RLUSD Aims To Dominate Cross-Border Transactions

According to Fortune, Ripple aims to become the leading network for cross-border transactions with the launch of RLUSD.

The stablecoin received approval from the New York Department of Financial Services (NYDFS) last week.

Initially, the stablecoin will be listed on Uphold, Bitso, MoonPay, Archax, and CoinMENA exchanges, with more platforms being added in the future.

Read also: Ripple’s $915M XRP Transfer Sparks RLUSD Stablecoin Optimism

"Stablecoins are a hybrid situation. They have traits like the U.S. dollar, but they are nowhere near as volatile as cryptocurrencies,” said Jack McDonald, SVP of stablecoins at Ripple.

In the near future, the fintech firm will focus on connecting RLUSD with the traditional finance system.

Furthermore, Ripple Payments, a Ripple subsidiary that focuses on cross-border payments, will begin utilizing RLUSD by early next year.

This could increase the stablecoin's use while also driving the price of XRP higher.

XRP Price Analysis

At the time of writing, XRP is trading at $2.47 with a market cap of $141.2 billion, ranking as the third-largest cryptocurrency by valuation.

Interestingly, the Relative Strength Index for the XRP price action reads a value of 65.34, indicating that the bulls are generally in control of the altcoin's price action and the gradient of the line suggests a move towards $2.5.

The MACD indicator shows a bearish divergence, with the signal line (red) moving above the MACD line (blue). This indicates that the recent sell-off had a significant impact on XRP holders.

However, the two lines are converging, suggesting a possible bullish divergence in the coming days.

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