XRP Price Slips. Why the Crypto Is Selling Off Today.

XRP has rallied over 400% since President-elect Donald Trump won the election, but Investors should brace for more volatility.

XRP fell early Wednesday after Tuesday’s crypto rally saw the price of the digital token soar double digits.

Investors should brace for more volatility.

XRP is down 5.3% over the last 24 hours to $2.57. It dropped from its high of $2.73 on Tuesday afternoon, as investors were likely taking profits.

Cryptocurrencies across the board got a boost Tuesday after Ripple, the payment platform that issues XRP, announced the beginning of trading of its new stablecoin RLUSD.

“RLUSD is already being viewed as a highly promising stablecoin, comparable to USDT and USDC , and is even considered a potential competitor to them,” said Arthur Azizov, CEO at the crypto business B2BinPay.

Boosted by hopes that RLUSD will cement Ripple’s position as a key player in the crypto space, XRP could reach a price range of between $5 and $7 in the first half of 2025, Azizov added.

While crypto bulls will be bulls, there’s reason to be cautious around Ripple and its digital tokens.

First, unlike other cryptos XRP isn’t mined by supercomputers solving complex problems. Instead, its supply is finite and Ripple controls most of it to ensure market stability, which has both advantages and drawbacks.

Second, investors would also be right to question if its sensible that a currency with such a limited use case (XRP can only be used to settle payments on the Ripple platform) has a market value of $147 billion.

Third, Ripple’s stablecoin RLUSD, which, unlike XRP, is pegged to the U.S. dollar and backed by the same amount of cash-equivalents according to Ripple, could struggle to keep its value on par with the dollar. That has been the case for Tether , the biggest stablecoin on the market, which in 2022 saw its value slip below its $1 peg.