The launch of Ripple’s RLUSD stablecoin was expected to be a bullish catalyst for XRP. However, in the days following the announcement, XRP price dropped by 15%, leaving investors puzzled and concerned. While the move might seem counterintuitive, the decline is not isolated to XRP—it reflects broader market sentiment triggered by macroeconomic developments, particularly decisions from the U.S. Federal Reserve.
This article explores the factors behind XRP’s recent price drop, analyzes whale activity, reviews key technical indicators, and provides insights into potential future price movements.
Market-Wide Selloff After FOMC Decision
On December 19, the Federal Open Market Committee (FOMC) announced a 25-basis-point interest rate cut. While this was anticipated, the Fed also signaled that only two rate cuts are expected in 2025—far fewer than the four many investors had hoped for. This more hawkish-than-expected stance triggered a sharp selloff across financial markets, including cryptocurrencies.
Despite Ripple’s positive news with the RLUSD stablecoin launch on December 17, the broader crypto market couldn’t withstand the pressure. Bitcoin, Ethereum, Solana, and XRP all experienced significant declines, contributing to over $800 million in liquidations within 24 hours.
XRP had reached a high of $2.72 just before the crash but quickly fell to $2.17—a steep correction that mirrored overall market dynamics rather than reflecting any negative news about Ripple itself.
👉 Discover how macro trends influence altcoin performance and what to watch next.
Whale Accumulation Amid Price Drop
One encouraging sign during this downturn is the surge in whale activity. On-chain data from Santiment shows a notable increase in transactions exceeding $1 million immediately following the crash. This pattern has repeated in prior market dips—similar spikes occurred on December 10 and December 2.
Large investors often take advantage of price corrections to accumulate assets at lower levels. The current whale buying suggests strong confidence in XRP’s long-term value, especially given Ripple’s expanding ecosystem and institutional partnerships.
Such accumulation phases are typically followed by consolidation and eventual upward momentum—provided macro conditions stabilize.
XRP Technical Analysis: Key Levels to Watch
As of December 19, 2024, XRP was trading around $2.37, down 3% over 24 hours. The broader altcoin market saw similar declines, reinforcing the idea that this is a sector-wide correction rather than an XRP-specific issue.
Relative Strength Index (RSI)
The 4-hour RSI stands at 42, indicating bearish momentum but not yet in oversold territory. A sustained move above 50 would signal recovering buying pressure and could pave the way for a bullish reversal.
Support and Resistance Levels
- Immediate Support: $2.30
- Stronger Support: $2.00
- Upside Target (if bullish): $3.00
If selling pressure continues, a break below $2.30 could open the door to further downside, potentially testing the $2.00 level. A drop below this key psychological and technical support might accelerate losses.
Conversely, if sentiment improves and buyers step in, XRP could retest resistance near $2.70 and aim for the $3.00 milestone—a level that would reignite investor optimism.
👉 Access real-time charts and advanced tools to track XRP’s next move.
Why Did RLUSD Launch Trigger a Sell-Off?
The timing of RLUSD’s launch coincided with heightened market sensitivity to macro news. Although launching a dollar-pegged stablecoin on the XRP Ledger is a major milestone for Ripple’s ecosystem, several factors may have contributed to profit-taking:
- Pre-launch pump: Traders may have bought XRP ahead of the RLUSD announcement, expecting immediate gains.
- News absorption: Once the news was priced in, short-term traders exited positions.
- Macro overshadowing: The FOMC decision dominated market narratives, drowning out positive project-specific developments.
In essence, RLUSD is a long-term fundamental win, but short-term price action remains heavily influenced by macroeconomic forces beyond Ripple’s control.
Frequently Asked Questions (FAQs)
Q: Why did XRP price drop after RLUSD launched?
A: Despite RLUSD being positive news, XRP’s decline was driven by broader market sentiment following the Fed’s hawkish guidance on future rate cuts.
Q: Did the Fed’s rate cut cause the crypto crash?
A: Yes—the 25-basis-point cut was expected, but the projection of only two rate cuts in 2025 disappointed investors, leading to risk-off behavior across asset classes.
Q: Are whales buying XRP during the dip?
A: Yes—on-chain data shows increased transaction volume from large wallets, suggesting accumulation by institutional or high-net-worth investors.
Q: What are the key support levels for XRP?
A: Immediate support sits at $2.30, with stronger support at $2.00. A break below $2 could lead to further downside.
Q: Can XRP recover to $3?
A: It’s possible if bullish momentum returns and macro conditions improve. Technical indicators would need to show sustained strength above $2.70 first.
Q: Is RLUSD good for XRP’s long-term growth?
A: Absolutely—RLUSD strengthens the utility of the XRP Ledger, encourages institutional adoption, and expands use cases in payments and DeFi.
Core Keywords Integration
This analysis integrates key search terms such as XRP price crash, RLUSD launch, XRP technical analysis, XRP whale activity, Fed rate decision impact on crypto, XRP support levels, XRP price prediction, and crypto market selloff—ensuring alignment with user search intent while maintaining natural readability.
While short-term volatility is inevitable in crypto markets, events like the RLUSD launch underscore Ripple’s ongoing innovation and strategic positioning in the global payments landscape.
👉 Stay ahead of market shifts with real-time data and expert insights.
Even during downturns, informed investors focus on fundamentals, on-chain behavior, and macroeconomic cues. For XRP holders, patience and monitoring key levels will be crucial in navigating the path ahead.