Ripple officially announced the delay of its stablecoin, $RLUSD, on December 5. The company revealed the postponement via its social media platform, X, stating, “$RLUSD isn’t launching today.” The launch now awaits approval from the New York Department of Financial Services (NYDFS).
XRP Price Drop and Market Impact
Following the announcement, XRP’s price fell sharply. It dropped from $2.59 to $2.31 within 24 hours, according to CoinMarketCap. This decline resulted in XRP losing its spot as the third-largest cryptocurrency, falling behind Tether (USDT), which holds a market cap of $135.8 billion.
Source: CoinMarketCap
As of now, XRP’s market cap stands at $139.24 billion, reflecting a 8.30% decrease in the past day. XRP’s 24-hour trading volume also saw a significant drop.
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It fell to $27.55 billion, marking a 30% decrease compared to the previous day. Despite this setback, XRP still holds its position ahead of Solana (SOL) and Binance Coin (BNB), even as BNB reached an all-time high on December 4.
Market Sentiment and Speculation
Analysts point to panic selling as a possible reason for XRP’s decline. Glassnode data highlights increased selling pressure, with trading volumes falling from $32 billion to $16 billion on December 4. This cooling-off period may have contributed to XRP’s market cap drop and loss of ranking.
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Stablecoins are seeing a surge, with a 24-hour trading volume of $317.13 billion. Ripple’s success with $RLUSD is crucial for enhancing its On-Demand Liquidity platform, which facilitates fast cross-border payments. A successful launch could potentially boost XRP prices.
Bollinger Bands indicate reduced volatility, as the bands have narrowed. XRP recently tested resistance at $2.74, with support holding around $2.21. Traders now await a breakout or breakdown to signal XRP’s next major price move.
