The crypto market ended its recent uptrend with a strong correction. Ripple $2.4Following the launch of RLUSD stablecoin, the XRP price lost 15% of its value. Investors are trying to understand the reasons behind this decline.
The Role of RLUSD Launch in the Decline in XRP
Ripple launched its stablecoin called RLUSD on December 17. This launch led to a rise in the price of XRP to $2.8 on launch day. However, soon the price pulled back sharply. Analysts attribute this volatility to both post-launch market reaction and general economic developments.
The Federal Reserve cut interest rates by 25 basis points, increasing the pressure on the crypto market. Crypto assets such as XRP showed a downward movement following this development. Market expert Ali (@ali_charts) said, “Fed’s interest rate cut was expected, but Bitcoin 
$101,762.8 and other assets fell hard. “This reveals the weak structure of the market,” he said.
Whale Activity Increases Interest in XRP
After the drop, there was a huge increase in XRP whale transactions. Large investors who made transactions over $1 million accumulated XRP in this process. The Ripple network witnessed similar whale activity during similar corrections on December 10 and December 2.
XRP price is trading at $2.37 as of December 19. According to analysts, the price may test the critical support at $2.3. If this support is broken, a drop towards the $2 level looks likely. However, if market conditions change and the RSI rises above 50, the XRP price may rise again.
Ripple’s RLUSD stablecoin move reveals how delicately balanced the market is. While whales’ purchases reflect long-term investors’ confidence in XRP, short-term market fluctuations continue to cause concern.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
