Let's explore why XRP's price plummeted by 15% within 48 hours of the launch of Ripple's RLUSD stablecoin, and what may happen next.

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After Ripple launched the RLUSD stablecoin, XRP's price fell by 15%. This crash was consistent with other parts of the cryptocurrency market, which also experienced a similar fate after the interest rate decision and the Federal Reserve FOMC meeting on December 19. In this CoinGape article, let's discuss why XRP's price would crash following the launch of a bullish event like RLUSD.

Why did XRP's price plummet after the launch of RLUSD?

Ripple announced the launch of the RLUSD stablecoin on December 17, which led to significant volatility and a 15% drop in XRP's price. The XRP token reached $2.72 on December 17 but fell to $2.17 within the past 24 hours, and this drop can be attributed to the Federal Reserve's decisions. After a 25 basis point rate cut, the Federal Reserve announced during the FOMC that it would cut rates twice in 2025 instead of four times. This hawkish move caused XRP's price to plummet.

This sell-off was a market-wide event, resulting in over $800 million in liquidations and a downward trend in XRP.

After yesterday's market crash, there was a surge in whale trades exceeding $1 million, indicating that large investors may be accumulating. Similar spikes were observed after the crashes on December 10 and December 2, with transaction counts peaking at 65 and 136, respectively.

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