XRP loses 3rd largest crypto spot as Ripple confirms postponing stablecoin launch

by

As a seasoned researcher and crypto enthusiast with over a decade of experience under my belt, I must admit that the recent events surrounding Ripple and XRP have piqued my interest. The delay in launching its stablecoin, $RLUSD, and the subsequent drop in XRP’s price has certainly shaken up the market dynamics.

Ripple admitted to postponing the release of its digital currency, which is designed to maintain a steady value. Consequently, the cost of XRP decreased significantly, resulting in XRP no longer holding its recent spot as the third largest digital asset on the market.

Ripple, recognized for its cryptocurrency transactions across borders, has delayed the release of its stablecoin, $RLUSD, as it waits for approval from the New York Department of Financial Services. In an official statement made on X on December 5th, Ripple stated, “The launch of $RLUSD is not happening today.

Although there has been some talk about it, RLUSD will not be launched today. We’re working hand in hand with the NYDFS for final approval and will keep everyone informed as soon as we have more details. We are dedicated to ensuring our launch complies with NYDFS regulations and maintains the highest standards of oversight. Stay tuned for updates!

— Ripple (@Ripple) December 4, 2024

As an analyst, I observed a significant dip in the value of Ripple’s native token (XRP) following a recent announcement. In just 24 hours, XRP’s price plummeted from $2.59 to $2.31, according to CoinMarketCap. This steep descent has caused XRP to lose its position as the third largest cryptocurrency by market capitalization, falling below Tether’s (USDT) market cap of approximately $135.8 billion.

XRP’s selling pressure increases

Currently, at the moment of reporting, XRP’s market capitalization is valued at approximately $131.42 billion, representing a 12% decrease over the past 24 hours. Despite this decline, XRP remains above Solana (SOL) and Binance Coin (BNB) in the rankings, with BNB achieving its all-time high on December 4th. In addition, XRP’s 24-hour trading volume has fallen sharply to around $26.02 billion, marking a nearly 40% drop from the previous day.

Despite RLUSD’s postponement being announced before a price decline, speculation may be linked to widespread selling, as suggested by Glassnode data. This is evident in the rising sell-off trend, where both the price and trading volume decreased from over $32 billion to $16 billion on Dec. 4, indicating that the market is currently experiencing a cooling-off phase. This situation might have contributed to XRP’s fall from its third position among cryptocurrencies.

What is next for XRP?

The market’s increasing demand for stablecoins, as evidenced by a 24-hour trading volume of $317.13 billion, may impact the price. Ripple’s success in developing its stablecoin is crucial to improving its On-Demand Liquidity system, which enables quick cross-border transactions, potentially boosting XRP prices.

By analyzing the current and potential future movements of XRP’s price, Bollinger Bands provide insights into its current position and possible future trajectory.

Following a significant increase that peaked at approximately $2.74451, the lowest point of support was slightly above the crucial $2.2 mark. Currently, the narrowing trend suggests decreased market volatility, as investors await either a breakthrough or a breakdown to determine the next significant price movement for XRP.

Read More

2024-12-05 11:14