Ripple RLUSD Delay Pushes XRP Down To 4th In Crypto Rank

Ripple has confirmed that it is delaying the launch of its stablecoin. Meanwhile, the price of XRP has fallen, causing XRP to lose its recently gained position as the third largest cryptocurrency.

Ripple, widely known for its cross-border payments in the crypto space, has postponed the launch of its stablecoin $RLUSD as it awaits final approval from the New York Department of Financial Services. In an official announcement regarding X, Ripple said, “$RLUSD is not launching today.” On December 5th.

Despite some speculation, $RLUSD It doesn’t start today. We are working in concert with NYDFS on final approval and will share updates as soon as possible.

We are fully committed to launching under the auspices of NYDFS and upholding the highest regulatory standards. Stay tuned…

— Ripple (@Ripple) December 4, 2024

The announcement coincided with a noticeable drop in the market price of Ripple’s native token (XRP). According to CoinMarketCap, the price of XRP dropped from $2.59 to $2.31 in 24 hours. This sharp decline pushed XRP out of its position as the third-largest cryptocurrency in terms of market cap, falling behind Tether (USDT)’s $135.8 billion market cap.

XRP’s selling pressure is increasing

At the time of writing, the market value of XRP stands at $131.42 billion, with a 12% decrease in the last 24 hours. However, XRP remains ahead of Solana (SOL) and Binance token (BNB), despite reaching a new all-time high on December 4. XRP’s 24-hour trading volume also decreased by approximately 40% compared to the previous one, falling to 26.02 billion dollars. Yesterday.

XRP futures volume dropped sharply below $16 billion on December 4, 2024; This is accompanied by a decreasing price trend and indicates reduced market activity. | Source: crypto.news

Although the news of RLUSD’s postponement preceded the drop in price, speculation may be linked to panic selling, according to Glassnode metrics. This is further evident in the increased selling pressure, with both price and trading volume dropping from $32 billion to $16 billion on December 4, confirming that the market is currently in a cooling off period. This could also have contributed to XRP’s ranking and fall from the third-largest crypto.

What’s next for XRP?

The price may also be affected by the increase in stablecoins, which is reflected in the 24-hour volume in the market at $317.13 billion. Ripple’s success with its stablecoin is key to developing its On-Demand Liquidity platform, which facilitates fast cross-border payments and could drive XRP prices higher.

As a measure of XRP’s recent price movement, Bollinger Bands can show where the price is and where it might go next.

The XRP/USD price chart shows that the Bollinger Bands are narrowing as the price hovers around $2.31. The latest price drop follows high volatility observed earlier this week, with trading volumes peaking around December 3. | Source: crypto.news.

After rising sharply to the most recent resistance level at $2.74451, the lowest support was just above the critical $2.2 level. Currently, the narrowing of the bands means that volatility is decreasing; Market participants are waiting for a breakout or a breakout to decide the next major XRP price move.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.