The Ripple token was trading at $2.55 as of Wednesday morning, marking a price level very close to the yearly high of $2,900.

Cardano’s founder, Charles Hoskinson, expressed his excitement about RLUSD in a post on the social media platform X. Hoskinson stated that he welcomed the stablecoin launch with excitement.

This statement from Hoskinson may indicate that Cardano may approve the launch of the RLUSD stablecoin on its blockchain. This could contribute to increasing the volume of stablecoins in the Cardano ecosystem.

Because currently there are only $24 million worth of stablecoins in Cardano’s network. The integration of RLUSD into the Cardano ecosystem can make a significant contribution to the growth of the network by increasing the volume of stablecoins.

As a stablecoin backed 1:1 by the US dollar, RLUSD aims to compete with stablecoins that already have large market shares, such as Tether and USD Coin.

Tether is currently the leader with a market share of 70 percent, while USD Coin stands out as another major stablecoin following it. Other stablecoin projects are alternatives such as USDS, Ethena USDe and Dai.

RLUSD will be launched first on Ethereum and XRP Ledger. But the biggest challenge for RLUSD will be the already sizable competition. For example, PayPal’s PYUSD stablecoin underperformed expected, accumulating only $495 million in assets despite the big name behind it.

The launch of RLUSD coincides with the recent strong comeback in the price of XRP. XRP is up over 400 percent from this year’s lows, and investors are welcoming the anticipated changes at the SEC (Securities and Exchange Commission) as a positive development.

SEC Chairman Gary Gensler will step down in January, despite being in a four-year legal battle with Ripple Labs. This could move XRP towards a more positive future.

Additionally, former president Donald Trump is considering the possibility of nominating Paul Atkins as the new chairman of the SEC. Paul Atkins is known as a crypto-friendly regulator, and this development could mean approval of an ETF (Exchange Traded Fund) for XRP by 2025 and more favorable regulations in general.

While XRP investors approach these changes with great excitement, Ripple’s price has risen above the $1 and $2 levels in recent weeks and is now on its way to exceed the $3 level.

While the XRP price currently remains above all moving averages, technical indicators such as the Relative Strength Index (RSI) and MACD have also reached overbought levels.

Ripple is currently forming the bullish pennant chart pattern, which is a popular bullish signal. This strengthens the possibility that the price of the XRP token will continue to rise and increases the possibility of it rising above the $3 level.

However, investors face a risk factor: XRP may experience a short-term pullback as it enters the markdown phase of the Wyckoff Method. If this pullback occurs, the XRP price may drop to around $1.50.

This possibility is on the agenda, especially due to technical indicators that are at overbought levels. Still, in light of the bull pennant formation and positive news, XRP is expected to make a strong price movement in the near term.

Although the possibility of Ripple price rising above the $3 level seems strong, it is important for investors to be careful and consider possible pullbacks. XRP’s price movements during this period will be shaped depending on the general situation in the market and the developments in the SEC.