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 price of XRP dropped by 15%, and traders are exploring the reasons.

Impact of RLUSD's launch on XRP's decline:

Ripple launched the RLUSD stablecoin on December 17. Initially, this caused the price of XRP to soar to $2.8 on that day, but then it sharply fell back. Market participants believe this volatility is related to the market's response after issuance and broader economic developments. Moreover, the Federal Reserve's decision to lower interest rates by 25 basis points put pressure on the cryptocurrency market, leading to a downward trend for assets like XRP.

Increased whale activity piques interest in XRP:

After the price drop, whale transactions involving XRP surged, with large investors seizing the opportunity to accumulate XRP. Similar whale activities have also been observed in previous adjustments within the Ripple network.

As of December 19, XRP's trading price was $2.37. Analysts believe the price may test the key 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 move to launch RLUSD shows a sensitive balance within the market. Whale purchases reflect the confidence of long-term investors, but short-term market volatility still raises concerns.

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