Bittime - The launch of the RLUSD stablecoin by Ripple, which should have been positive news, was followed by a 15% drop in the price of XRP in the last 48 hours.
Why is the price of this asset actually decreasing? Read this article to find out why!
XRP Price Drops After RLUSD Stablecoin Launch
Ripple launched its stablecoin RLUSD on December 17, 2024. Although this launch was considered a bullish event, the price of XRP dropped from $2.72 to $2.17 in a short period of time.
The main cause of the XRP price drop was the Federal Reserve (The Fed) decision announced at the FOMC meeting on December 19.
The Fed cut rates by 25 basis points, but also stated that there would only be 2 rate cuts in 2025, instead of 4 as expected by the market. This triggered a sell-off in the crypto market, including XRP.
Also Read: XRP Price Prediction Today, December 20, 2024
XRP Price Drops: Entire Crypto Market Affected
Not only XRP, the entire crypto market experienced the same thing, with more than $800 million in liquidations taking place in a short period of time. This drop also affected other altcoins which also showed a bearish trend .
However, despite the XRP price drop, there has been an increase in activity by XRP whales . Transactions worth more than $1 million increased significantly after the crash, indicating potential accumulation by whales.
Also Read: XRP Whales Bought 30 Million XRP As Ripple Launched Stablecoin RLUSD
XRP Price Drops: XRP Technical Analysis
Source: Bittime.com
On December 19, 2024, the price of XRP was recorded at $2.37, down 3% in the last 24 hours. According to Bittime market today, the price of XRP is down 0.78% and is trading at $2.32 at the time of writing.
Technical indicators such as the Relative Strength Index (RSI) are showing a reading of 42, indicating a bearish trend. If this trend continues, the XRP price could break through the support level at $2.3 and even drop to $2.
However, there is a chance of a rebound if the bullish momentum returns. In an optimistic scenario, the XRP price has the potential to rise and return to the $3 level.
Also Read: Meme Coin XRP Ledger Strengthens: ARMY, BEAR, and MAG
FAQ XRP
What is XRP and What is its Use?
XRP is a digital asset created by Ripple Labs and designed to facilitate cross-border payments. XRP’s blockchain technology enables transactions in just a few seconds with very low fees, making it ideal for international money transfers and micropayments.
What is the Difference Between XRP and Other Cryptocurrencies Like Bitcoin?
XRP supports cross-border payment systems with a focus on speed and cost efficiency, unlike Bitcoin which functions more as a store of value and investment tool. In addition, XRP uses a consensus mechanism that does not require mining, making it more energy efficient.
How to Buy XRP?
XRP can be purchased through various exchange platforms such as Bittime, by visiting the trade page on the official Bittime website.
How to Buy Crypto on Bittime
Want to trade and buy Bitcoin and invest in crypto easily? Bittime is ready to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures that every transaction is safe and fast.
Start by registering and verifying your identity, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!
Check BTC to IDR , ETH to IDR , SOL to IDR and other crypto assets rates to find out today's crypto market trends in real-time on Bittime.
Also, visit Bittime Blog for interesting updates and educational information about the crypto world. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the crypto world.
Reference
Coingape, Why is XRP Price Crashing After RLUSD Launch?, accessed Desember 20, 2024.
Yuri Molchan, Millions of RLUSD Ready to Hit Market After Recent Launch: Details, accessed December 20, 2024.
Author: IPR
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