Ripple's New Stablecoin Affects XRP Price 🔥🔥🔥
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The cryptocurrency market recently ended its upward trend with a significant correction. After Ripple launched the RLUSD stablecoin, the XRP price fell by 15%, and traders are exploring the reasons.
Impact of RLUSD Launch on XRP Decline:
Ripple launched the RLUSD stablecoin on December 17. Initially, this caused the XRP price to soar to $2.8 on the same day, but it then sharply retreated. Market participants believe that this volatility is related to the market reaction after the launch and broader economic developments. Additionally, the Federal Reserve's decision to lower interest rates by 25 basis points has put pressure on the cryptocurrency market, resulting in a downward trend for assets like XRP.
Increased Whale Activity Raises Interest in XRP:
After the price drop, whale transactions involving XRP surged as large investors took the opportunity to accumulate XRP. Similar whale activity was also observed during previous adjustments in the Ripple network.
As of December 19, the trading price of XRP was $2.37. Analysts believe that the price may test the critical support level of $2.3, and if it breaks below that, it could drop to $2; however, if market conditions change and the RSI rises above 50, the price may rebound.
Ripple's launch of RLUSD demonstrates the sensitive balance within the market. Whale buying reflects the confidence of long-term investors, but short-term market volatility still raises concerns.
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