After a strong bullish trend, the crypto market reversed course following a significant market downturn. XRP price experienced a sharp 15% decline after the launch of RLUSD, marking a bearish shift after gaining over 110% in the past month. Investors are now assessing what’s driving this unexpected market correction.
What’s Behind XRP Price Crash After RLUSD Launch?
XRP price witnessed significant volatility earlier this week following Ripple’s announcement of its RLUSD stablecoin launch on December 17. The cryptocurrency initially rallied above $2.8, reaching a multi-week high of $2.7 on the launch day. This surge was fueled by anticipation surrounding the stablecoin and positive market sentiment.
The Ripple fell significantly, which was in line with other markets’ decline. The recent rate cut by the Federal Reserve also escalated market-wide corrections which led to the downward trend of XRP.
The Federal Reserve has reduced interest rates by 25 basis points, a widely anticipated move supported by 97% of market analysts.
What’s the deal with today’s market chaos?
The Fed went ahead with a predictable 25 bps rate cut. No surprises there—97% of people expected it. But then, Bitcoin tanked around $100,000. Why? Let me explain without the usual Fed jargon.
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This is a glimpse of the premium… pic.twitter.com/wANPW4t2uV
— Ali (@ali_charts) December 18, 2024
Whales Buy XRP After Crash
Whale transactions exceeding $1 million surged after yesterday’s market crash, suggesting potential accumulation by large investors. Similar spikes occurred after crashes on December 10 and December 2, with transaction counts peaking at 65 and 136, respectively.
Source: Santiment
XRP Technical Analysis
As of 19th December 2024, the price of XRP hovered at $2.37, making a decline of 3% in the past 24-hours. This follows the other decrease in crypto markets, with top altcoins seeing a similar decrease.
The 4-hour Relative Strength Index (RSI) is at 42 which is a bearish front. A sustained recovery of RSI above the neutral 50 level may actually support the notion of a bullish reversal.
XRP Price Chart: TradingView
If the bearish trend persists, the XRP price could break below the $2.3 support level. The ongoing bearish momentum could push the price further down, targeting the stronger support at $2. A breakdown below this level might intensify selling pressure.
However, if the bullish momentum makes a comeback, XRP could attempt a rebound, potentially surpassing the $3 mark.
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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