After the launch of Ripple’s RLUSD stablecoin, XRP price has dropped 15%. This crash is in line with the rest of the crypto market, which has also experienced a similar fate after the interest rate decision and Fed’s FOMC meeting on December 19. In this CoinGape article, let’s explore why XRP price is crashing after such a bullish event of launching RLUSD.
Why XRP Price Crashed After RLUSD Launch?
Ripple’s announcement of RLUSD stablecoin launch on December 17 was followed by a massive volatility spike that led to a 15% XRP price crash. XRP token hit $2.72 on December 17 but has dropped to $2.17 over the past 24 hours and the reason for this crash can be attributed to Fed’s decision. After the interest rates were cut by 25 basis points, the Fed, during the FOMC announced that 2025 will have two rate cuts as oppossed to four. This hawkish development caused XRP price to crash.
This selloff was a market-wide event that lead to more than $800 million in liquidations and the downward trend of XRP.
Whales Buy XRP After Crash
Whale transactions exceeding $1 million surged after yesterday’s market crash, suggesting potential accumulation by large investors. Similar spikes occurred after crashes on December 10 and December 2, with transaction counts peaking at 65 and 136, respectively.
XRP Technical Analysis
As of 19th December 2024, the price of XRP hovered at $2.37, making a decline of 3% in the past 24-hours. This follows the other decrease in crypto markets, with top altcoins seeing a similar decrease.
The 4-hour Relative Strength Index (RSI) is at 42 which is a bearish front. A sustained recovery of RSI above the neutral 50 level may actually support the notion of a bullish reversal.
If the bearish trend persists, the XRP price could break below the $2.3 support level. The ongoing bearish momentum could push the price further down, targeting the stronger support at $2. A breakdown below this level might intensify selling pressure.
However, if the bullish momentum makes a comeback, XRP could attempt a rebound, potentially surpassing the $3 mark.
The XRP recent dip reflects market turbulence and cautious sentiment after RLUSD’s launch. Investors are eyeing key support levels and whale activity. A more decrease in Ripple price could lead to a decrease below $2 level in the coming days.
Frequently Asked Questions (FAQs)
Despite Ripple’s RLUSD stablecoin launch XRP price is down 15% due to the Fed’s decision that there will be two rate cuts in 2025 instead of the anticipated two cuts.
The Fed’s 25-basis-point rate cut contributed to a broader market downturn.
Key support levels are $2.3 and $2. A breakdown risks further declines.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/xrp-price-crashes-15-after-rlusd-launch-whats-driving-the-dip/
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