Highlights
Against the backdrop of an overall market slump, Ripple's launch of RLUSD triggered volatility in XRP's price.
Whale trading surged, suggesting a potential XRP accumulation strategy.
The Federal Reserve's interest rate cuts have intensified the bearish trend in the cryptocurrency market.
After experiencing a strong bullish trend, the cryptocurrency market reversed course following a sharp decline. After the launch of RLUSD, the price of XRP plummeted 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 launch. This surge was driven by expectations for the stablecoin and positive market sentiment.
XRP's significant decline aligns with the bearish trends in other markets, and the recent interest rate cuts by the Federal Reserve have also exacerbated the overall market correction, leading to a downward trend for XRP.
The Federal Reserve has lowered interest rates by 25 basis points, a move widely anticipated and supported by 97% of market analysts.
Whales buy XRP after the plunge
After yesterday's market crash, whale trading volume exceeding $1 million surged, indicating that large investors may be accumulating. Similar surges were observed after the crashes on December 10 and December 2, with transaction counts reaching peaks of 65 and 136, respectively.
XRP Technical Analysis
As of December 19, 2024, XRP's price hovered around $2.37, down 3% in the past 24 hours. Prior to this, there were also other declines in the cryptocurrency market, 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 the view of a bullish reversal.
If the bearish trend continues, the price of XRP may drop below the support level of $2.3. Continued bearish momentum could further push the price down, targeting a stronger support level of $2. A break below this level could exacerbate selling pressure.
However, if bullish momentum returns, XRP may attempt a rebound, potentially breaking through the $3 barrier.
XRP's recent decline reflects the market turmoil and cautious sentiment following the launch of RLUSD. Investors are watching key support levels and whale activity. Further declines in the price of Ripple could lead to a drop below the $2 level in the coming days.
Whales buy XRP after the plunge
After yesterday's market crash, whale trading volume exceeding $1 million surged, indicating that large investors may be accumulating. Similar surges were observed after the crashes on December 10 and December 2, with transaction counts reaching peaks of 65 and 136, respectively.
XRP Technical Analysis
As of December 19, 2024, XRP's price hovered around $2.37, down 3% in the past 24 hours. Prior to this, there were also other declines in the cryptocurrency market, 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 the view of a bullish reversal.
If the bearish trend continues, the price of XRP may drop below the support level of $2.3. Continued bearish momentum could further push the price down, targeting a stronger support level of $2. A break below this level could exacerbate selling pressure.
However, if bullish momentum returns, XRP may attempt a rebound, potentially breaking through the $3 barrier.
XRP's recent decline reflects the market turmoil and cautious sentiment following the launch of RLUSD. Investors are watching key support levels and whale activity. Further declines in the price of Ripple could lead to a drop below the $2 level in the coming days.