Market analysts attribute XRP's recent price increase to a favorable regulatory environment and expectations of a Federal Reserve interest rate cut.

Despite ongoing legal issues with the SEC, which heavily influence market sentiment, potential developments could improve XRP's price outlook.

During this price recovery, whales have capitalized on the dip, purchasing over 100 million XRP, reflecting their confidence in a rebound.

On December 11, 2024, Ripple CEO Brad Garlinghouse announced that the company received approval from the New York State Department of Financial Services (NYDFS) to launch its Ripple USD (RLUSD) stablecoin.

Ripple reported significant growth in Q3 2024, driven by increased transaction volumes on the XRP Ledger and rising institutional interest in XRP, which has recently surged in value.

In the last 24 hours, XRP's price has increased by 20%, reaching $2.43, significantly outperforming Bitcoin's 5% rise, as it recovers from a low of $1.90.

Following this approval, Garlinghouse indicated that exchange and partner listings for RLUSD would be available soon, generating excitement within the XRP community.

Currently in beta testing on both Ethereum and the XRP Ledger, RLUSD is expected to enhance liquidity and utility for XRP, which has been a focal point of speculation among investors.

Initially launched in April 2024, RLUSD is pegged to the US dollar and aims to strengthen Ripple's ecosystem amid a growing demand for stablecoins, projected to reach a $2 trillion market cap by 2028.

The success of RLUSD will depend on its ability to offer appealing incentives to attract users in a competitive landscape dominated by established stablecoins like Tether's USDt and USD Coin.

Analysts suggest that XRP's current stabilization at around $2.6 could be disrupted by market corrections, but XRP-related ETFs may drive future growth.

If the bullish trend continues, popular trader DonAlt believes XRP could dominate discussions in the crypto community, highlighting its centralized structure as an advantage.