Highlights
Amidst an overall market slump, Ripple's launch of RLUSD triggered price fluctuations for XRP.
Whale trading surges, hinting at a potential XRP accumulation strategy.
The Fed's interest rate cut has intensified the bearish trend in the cryptocurrency market.
After experiencing a strong bullish trend, the cryptocurrency market reversed course following a significant decline. After the launch of RLUSD, the price of XRP sharply dropped by 15%, marking a bearish shift after rising over 110% in the past month. Investors are now assessing what drove this unexpected market adjustment.
What caused the price of XRP to plummet after the launch of RLUSD?
Earlier this week, the price of Ripple (XRP) experienced significant volatility after Ripple announced the launch of the RLUSD stablecoin on December 17. The cryptocurrency initially surged above $2.8 and reached a multi-week high of $2.7 on the day of the announcement. This spike was driven by expectations for the stablecoin and positive market sentiment.
XRP has fallen sharply, aligning with the bearish trends in other markets, with the Fed's recent interest rate cuts further exacerbating the overall market pullback, leading XRP to exhibit a downward trend.
The Fed has cut interest rates by 25 basis points, a move widely anticipated and supported by 97% of market analysts.
Whales buy XRP after the crash
Following yesterday's market crash, trading volumes for whales exceeding $1 million surged, indicating that large investors may be accumulating. Similar surges occurred after the crashes on December 10 and December 2, with transaction counts peaking at 65 and 136, respectively.
XRP Technical Analysis
As of December 19, 2024, the price of XRP hovered around $2.37, down 3% in the past 24 hours. The cryptocurrency market also saw other declines, with top altcoins experiencing similar drops.
The 4-hour Relative Strength Index (RSI) is at 42, indicating a bearish front. A sustained rise above the neutral level of 50 could actually support a bullish reversal viewpoint.
If the bearish trend continues, the price of XRP may fall below the support level of $2.3. Persistent bearish momentum could further push prices lower, targeting a stronger support level at $2. A drop below this level may intensify selling pressure.
However, if bullish momentum returns, XRP may attempt a rebound, potentially breaking the $3 barrier.
The recent decline of XRP reflects the market turmoil and cautious sentiment following the launch of RLUSD. Investors are keeping an eye on key support levels and whale activity. Further declines in Ripple's price may lead to a drop below the $2 level in the coming days.
Whales buy XRP after the crash
Following yesterday's market crash, trading volumes for whales exceeding $1 million surged, indicating that large investors may be accumulating. Similar surges occurred after the crashes on December 10 and December 2, with transaction counts peaking at 65 and 136, respectively.
XRP Technical Analysis
As of December 19, 2024, the price of XRP hovered around $2.37, down 3% in the past 24 hours. The cryptocurrency market also saw other declines, with top altcoins experiencing similar drops.
The 4-hour Relative Strength Index (RSI) is at 42, indicating a bearish front. A sustained rise above the neutral level of 50 could actually support a bullish reversal viewpoint.
If the bearish trend continues, the price of XRP may fall below the support level of $2.3. Persistent bearish momentum could further push prices lower, targeting a stronger support level at $2. A drop below this level may intensify selling pressure.
However, if bullish momentum returns, XRP may attempt a rebound, potentially breaking the $3 barrier.
The recent decline of XRP reflects the market turmoil and cautious sentiment following the launch of RLUSD. Investors are keeping an eye on key support levels and whale activity. Further declines in Ripple's price may lead to a drop below the $2 level in the coming days.