Introduction
XRP has experienced a sharp price drop after Ripple announced a delay in launching its stablecoin, $RLUSD. This news has raised concerns among investors. This fall caused XRP to lose its place as the third-largest cryptocurrency by market cap.
Ripple Confirms Stablecoin Delay
Ripple announced on Dec. 5 that $RLUSD would not launch as planned. However, the company said it is waiting for approval from the New York Department of Financial Services (NYDFS). In addition, in a statement on X (formerly Twitter), Ripple said, “$RLUSD isn’t launching today”. The delay disappointed investors who expected the stablecoin to boost Ripple’s business.
The $RLUSD stablecoin is key to Ripple’s On-Demand Liquidity (ODL) platform. This platform simplifies cross-border payments. Without the stablecoin, Ripple’s plans face delays.
XRP Price Drops Sharply
The news of the delay caused XRP’s price to fall quickly. According to CoinMarketCap, the token dropped from $2.59 to $2.31 in 24 hours. This drop pushed XRP’s market cap to $131.42 billion, below Tether’s (USDT) $135.8 billion.
XRP is now the fourth-largest cryptocurrency. Increased selling pressure played a role in this price drop. Glassnode data shows panic selling after the announcement. Trading volume fell from $32 billion to $16 billion, reflecting lower investor activity. These numbers confirm that the market is cooling.
XRP Faces More Selling Pressure
XRP is still ahead of Solana (SOL) and Binance Coin (BNB). However, its 24-hour trading volume fell by 40%, dropping to $26.02 billion. This sharp decline shows reduced market interest. Panic selling increased pressure on XRP. Both price and trading activity declined after the delay. Investors seem uncertain about XRP’s short-term future. The market is now in a waiting period, and XRP faces challenges to recover.
What Lies Ahead for XRP
Ripple’s $RLUSD stablecoin is crucial for XRP’s growth. Once launched, the stablecoin could improve Ripple’s ODL platform. As a result, this may increase XRP’s value and restore market confidence. Market trends also influence XRP’s future.
Stablecoins are gaining more attention, with a 24-hour volume of $317.13 billion. Ripple needs $RLUSD to compete in this growing sector. Without it, XRP may struggle to gain momentum. Bollinger Bands show narrowing price ranges for XRP. Support is holding above $2.21, but volatility is low. Investors are watching for a breakout or breakdown to signal the next price move.
Conclusion
Ripple’s delay of $RLUSD created uncertainty for XRP holders. The token lost its third-place rank and saw a sharp price drop. These events highlight the impact of Ripple’s challenges on XRP’s performance.
For XRP to recover, Ripple must launch $RLUSD and meet market expectations. Until then, XRP faces reduced activity and selling pressure. The token’s future depends on Ripple’s ability to deliver its plans and adapt to the growing stablecoin market.
