XRP News Today: Regulatory Tailwinds Lift RLUSD as XRP's Technical Outlook Worsens

XRP's November performance has highlighted a growing divergence between its price action and the momentum surrounding Ripple's RLUSD stablecoin, as regulatory approvals and institutional adoption drive optimism for the latter while technical indicators suggest ongoing pressure on the cryptocurrency. Despite XRP's price falling by roughly 40% from its annual peak, RLUSD's 30-day transaction volume surged 56% to $3.5 billion, and its market capitalization surpassed $1.26 billion, reflecting strong institutional demand. The stablecoin's expansion into Abu Dhabi's ADGM, where it was recognized as an Accepted Fiat-Referenced Token, further underscores its role as a regulated settlement asset in key financial hubs.

The ADGM approval, granted by Abu Dhabi's Financial Services Regulatory Authority (FSRA), allows licensed institutions to use RLUSD for collateral, lending, and prime brokerage activities within the financial center. This marks a critical step for Ripple's strategy to position RLUSD as a compliant alternative to other stablecoins, particularly in markets where regulatory clarity is accelerating adoption. Jack McDonald, Ripple's senior vice president of stablecoins, emphasized that the designation reinforces the company's commitment to "non-negotiable" compliance and trust, key factors for institutional finance. The move aligns with Ripple's broader expansion in the Middle East, including partnerships with Zand Bank and Mamo in the UAE, and follows similar approvals in Bahrain and Dubai's DIFC as reported by Coinpedia.

While RLUSD's growth trajectory is robust, XRP's technical outlook remains bearish. The token has remained below its 100-day Exponential Moving Average and breached the Supertrend indicator, forming a series of lower lows and lower highs. Analysts note that XRP ETF inflows have reached $622 million, but these represent just 0.50% of its market cap—well below the 5.5% and 6.54% seen for Ethereum and Bitcoin ETFs, respectively. This suggests untapped potential for ETF-driven demand but also highlights the challenges of competing with more established assets.

The regulatory tailwinds for RLUSD, however, could indirectly benefit XRP. As institutional adoption of the stablecoin grows, so does its utility on the XRP Ledger (XRPL), where RLUSD issuance increased 92.6% to $225 million in November. Although Ethereum dominates RLUSD's on-chain activity, the stablecoin's integration into Ripple's cross-border payment solutions and its role in collateral and settlement flows may reinforce the XRP Ledger's infrastructure narrative.

Looking ahead, analysts predict RLUSD could enter the top five global stablecoins by market capitalization if its institutional adoption continues. With approvals in tightly regulated markets like the UAE and a 1:1 USD backing structure, the stablecoin is well-positioned to attract more enterprises and financial institutions. For XRP, the path to recovery may depend on whether RLUSD's success translates into broader ecosystem growth and whether ETF inflows sustain momentum amid broader market volatility.