XRP Price Crashes 15% After RLUSD Launch: What’s Driving the Dip?

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As an experienced crypto investor with a knack for navigating market volatility, I must admit that this XRP price crash after the RLUSD launch has left me somewhat perplexed but not entirely surprised. Over the years, I’ve seen my fair share of market corrections following bullish trends, and this seems to be just another chapter in the rollercoaster ride that is cryptocurrency investing.

Following a powerful rise in crypto prices, the market took a turn for the worse due to a major market drop. The price of XRP plummeted by 15% after the introduction of RLUSD, signaling a bearish change after increasing more than 110% over the past month. Now, investors are trying to figure out what’s causing this sudden market adjustment.

What’s Behind XRP Price Crash After RLUSD Launch?

Earlier this week, the price of XRP saw substantial fluctuations due to Ripple‘s announcement about the launch of its RLUSD stablecoin on December 17th. Initially, the cryptocurrency surged above $2.8, hitting a high not seen for several weeks at $2.7 on the day of the launch. This spike was driven by excitement surrounding the stablecoin and optimistic market feelings.

1) The value of Ripple dropped noticeably, mirroring a broader market slump. Additionally, the latest interest rate reduction by the Federal Reserve contributed to widespread market adjustments, ultimately causing XRP’s decline.

According to most financial analysts (97%), it was expected that the Federal Reserve would lower interest rates by a quarter of a percentage point.

What’s the deal with today’s market chaos?

As a crypto investor, I wasn’t taken aback by the Fed’s anticipated 25 basis point rate reduction. After all, almost everyone saw it coming. However, the unexpected dip in Bitcoin‘s price around the $100,000 mark left me puzzled. Here’s my interpretation without getting bogged down in Fed-speak:

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This is a glimpse of the premium…

— Ali (@ali_charts) December 18, 2024

Whales Buy XRP After Crash

As a researcher studying whale transactions in the cryptocurrency market, I’ve noticed an intriguing pattern: Transactions surpassing $1 million significantly increased following yesterday’s market crash. This increase could indicate that large investors are potentially accumulating more assets during these downturns. Interestingly, similar spikes were observed after crashes on December 10 and December 2, with transaction counts peaking at 65 and 136, respectively.

XRP Technical Analysis

On December 19th, 2024, the value of XRP stood firm at approximately $2.37. Over the preceding 24 hours, this figure represented a 3% drop. This downward trend mirrors what’s happening in other sectors of the crypto market, where prominent altcoins have also experienced decreases of a similar magnitude.

In simpler terms, when the 4-hour Relative Strength Index (RSI) stands at 42, it suggests a potential downward trend, often referred to as a bearish signal. However, if the RSI recovers and consistently surpasses the neutral level of 50, this could indicate a possible reversal towards an upward trend, which might be interpreted as a bullish sign.

As a researcher, I’m observing a persistent bearish trend in the XRP market. If this trend continues, the current support at around $2.3 may be breached, potentially causing the price to drop further towards the stronger support level of approximately $2. A breakdown below this level could amplify selling pressure and intensify the downward momentum.

Should the bullish sentiment regain strength, I, as a researcher, foresee a potential resurgence for XRP, possibly propelling it beyond the $3 threshold.

The XRP recent dip reflects market turbulence and cautious sentiment after RLUSD’s launch. Investors are eyeing key support levels and whale activity. A more decrease in Ripple price could lead to a decrease below $2 level in the coming days.

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2024-12-19 12:28