TLDR
Ripple delayed its RLUSD stablecoin launch pending NY regulatory approval
XRP dropped from $2.59 to $2.31, losing its #3 crypto ranking to Tether
XRP’s market cap fell 12% to $131.42B with trading volume down 40% to $26.02B
XRP futures trading volume declined sharply from $32B to $16B
Price currently consolidating near $2.20 support level with resistance at $2.50
The cryptocurrency market witnessed a notable shift on December 5, 2024, as XRP lost its position as the third-largest cryptocurrency by market capitalization. This development came after Ripple announced the postponement of its anticipated stablecoin launch.
Ripple confirmed the delay of its RLUSD stablecoin through an official announcement on X (formerly Twitter). The company stated simply, “$RLUSD isn’t launching today,” as it awaits final approval from the New York Department of Financial Services.
Despite some speculation, $RLUSD isn’t launching today. We’re in lockstep with the NYDFS on final approval and will share updates as soon as possible.
We are fully committed to launching under the supervision of NYDFS and upholding the highest regulatory standards. Stay tuned…
— Ripple (@Ripple) December 4, 2024
The market reaction was swift and clear. XRP’s price dropped from $2.59 to $2.31 within 24 hours, according to data from CoinMarketCap. This decline pushed XRP’s market capitalization below Tether (USDT), which currently holds a market cap of $135.8 billion.
The numbers paint a clear picture of the market’s response. XRP’s market capitalization fell to $131.42 billion, marking a 12% decrease over 24 hours. The token’s trading volume also showed a sharp decline, falling 40% to $26.02 billion from previous levels.
Futures trading data revealed an even steeper drop in market activity. XRP futures trading volume plummeted from over $32 billion to $16 billion on December 4, indicating reduced market participation and trading interest.
The timing of the price decrease aligned closely with Ripple’s announcement about the RLUSD delay. Market data from Glassnode suggests this news triggered some panic selling among investors, contributing to the increased selling pressure.
Despite the setback, XRP maintains its position ahead of both Solana (SOL) and Binance token (BNB), even as BNB reached a new all-time high on December 4. This suggests the token retains strong market support despite the recent price movement.
XRP Price on CoinGecko
The broader stablecoin market shows robust activity, with a 24-hour volume of $317.13 billion. This high volume highlights the growing importance of stablecoins in the cryptocurrency ecosystem, making Ripple’s delayed entry into this sector more notable.
Technical analysis using Bollinger Bands indicates the current state of XRP’s price action. After reaching a recent resistance level at $2.74451, the price found support just above $2.21. The narrowing of the Bollinger Bands suggests reduced price volatility, with traders waiting for clear directional signals.
The market is closely watching several key price levels. Current resistance stands at $2.50, with a bearish trend line forming. On the support side, $2.20 represents a crucial level that traders are monitoring.
Trading data shows the formation of a low at $2.166, followed by a move above $2.20 and $2.25. This price action occurred after a decline from the recent swing high of $2.865.
The postponement of RLUSD holds particular importance for Ripple’s business strategy. The stablecoin is designed to enhance the company’s On-Demand Liquidity platform, which facilitates cross-border payments.
Market observers note that XRP’s recent price movements come during a period of increased activity in the stablecoin sector. The high trading volumes in stablecoins suggest strong market demand for these digital assets.
Hour-by-hour trading data reveals fluctuating market sentiment. The price has moved between support at $2.20 and resistance near $2.50, with traders watching these levels for potential breakout signals.
Recent market data indicates XRP’s Relative Strength Index (RSI) has fallen below the 50 level, while the Moving Average Convergence Divergence (MACD) shows decreasing bullish momentum.
The latest price data shows XRP trading below both $2.50 and the 100-hour Simple Moving Average, with immediate resistance near the $2.40 level.
The post XRP (XRP) Price: Retreats to $2.31 Following Ripple’s Launch Announcement appeared first on Blockonomi.