XRP Drops 15% After RLUSD Launch
The crypto market has experienced a strong correction after the recent bullish move. After the launch of Ripple’s RLUSD stablecoin, the price of XRP dropped by 15%. Investors are trying to understand the reasons behind this decline.
Ripple launched its stablecoin called RLUSD on Dec. 17. After the launch, XRP rose to $2.8 but soon experienced a sharp pullback. Analysts attribute this surge to both post-launch market reactions and general economic developments.
The Federal Reserve’s 25 basis point interest rate cut has put serious pressure on the crypto market. Crypto assets like XRP have moved lower after this development. “The Fed rate cut was expected, but Bitcoin fell to $102,354.8 and other assets fell significantly. This reveals the fragile nature of the market,” said market expert Ali (@ali_charts).
After the drop, whale transactions in XRP increased significantly. Large investors who traded over $1 million accumulated XRP in the process. The Ripple network had hosted similar whale activities during similar corrections on December 10 and December 2.
The XRP price is trading at $2.37 as of December 19. According to analysts, the price could test the critical support at $2.3. If this support level is broken, a drop to $2 is possible. However, if market conditions change and the RSI rises above 50, the XRP price could see a rise again.
Ripple’s move to the RLUSD stablecoin highlights how delicately balanced the crypto market is. While whale purchases reflect long-term investors’ confidence in XRP, short-term market fluctuations continue to cause concern for investors.