After the highly anticipated launch of Ripple’s RLUSD stablecoin, XRP faced a significant setback, dropping by a staggering 15%. This downturn is not an isolated incident; it mirrors broader trends in the crypto market, which has been reacting to economic changes following the recent Federal Reserve (Fed) announcements.
So, what exactly led to this dip? Well, on December 17, when Ripple introduced the RLUSD, excitement surged initially, with XRP peaking at $2.72. Yet, just a day later, the price plummeted to $2.17. The root cause? The Fed’s unexpected decision to forecast fewer rate cuts in 2025. Instead of the anticipated four cuts, they now project only two. This hawkish announcement led to a market-wide sell-off, with over $800 million in liquidations, triggering widespread panic in the crypto world, including XRP’s dramatic decline.
Interestingly, while many investors are feeling the sting of this downturn, it seems that some savvy whales are seizing the opportunity to accumulate XRP at these lower prices. Transactions over $1 million surged following the price crash, indicating that major players might be viewing this as a buying opportunity. This trend aligns with previous market dips, where similar spikes in whale transactions were noted.
As of December 19, XRP hovered around $2.37, marking a 3% decline in just 24 hours, consistent with overall bearish sentiments in the crypto space. Technical indicators show that the Relative Strength Index (RSI) stands at 42, suggesting a bearish outlook. If this trend continues, XRP could breach the crucial $2.30 support level, raising concerns about further declines towards the stronger support at $2. A fall below that threshold might intensify the selling pressure.
Conversely, should a bullish momentum begin to take shape, XRP could rally back, potentially reaching above the $3 mark.
What does this mean for investors? The recent drop in XRP’s price highlights a turbulent market and indicates a cautious sentiment following the RLUSD launch. Investors are now closely monitoring key support levels and whale activity to reassess their strategies. Should XRP decline further, a dip below the $2 mark may become likely in the coming days.
FAQs
- Why is XRP price down after the launch of RLUSD?
The XRP price plummeted 15% due to the Fed’s decision to reduce anticipated rate cuts for 2025 from four to two. - What role did the Federal Reserve play in this drop?
The Fed’s announcement of a 25-basis-point rate cut contributed significantly to the broader market downturn. - What are XRP’s key support levels?
Key support levels for XRP are at $2.30 and $2, with a breakdown below these levels signaling further declines.
