🌎 XRP Price Drops Over 5% Amid Market Competition

XRP Price Drops Amid Federal Reserve Decision and Market Competition

The XRP price retreated on Wednesday, falling by over 5% and erasing most of its Tuesday gains, following the launch of the RLUSD stablecoin. This decline led to significant liquidations of bullish positions, totaling over $15.19 million, with short positions worth over $4.6 million also being liquidated.

RLUSD Stablecoin Launch and Market Competition

The RLUSD stablecoin has attracted over $53 million in assets and a 24-hour volume of over $550,000, according to CoinMarketCap. However, it faces stiff competition in an already saturated market, with Tether holding over 60% market share, followed by USD Coin, Ethena USDe, USDS, and Dai.

History suggests that even high-profile stablecoin launches may struggle. For example, PayPal’s PYUSD has a market cap of $447 million, despite the company’s massive fintech presence. Similarly, USDD, launched in 2022, has stalled at $745 million in the last two years.

XRP Price Retreat and Potential Catalysts

XRP’s price retreat may reflect profit-taking after the RLUSD launch and nervousness about the Federal Reserve’s final interest rate decision for the year. Economists expect a “hawkish cut,” with the Fed reducing rates by 0.25% while signaling a potential pause in 2025.

However, XRP has potential catalysts ahead, including the possibility of the new Securities and Exchange Commission abandoning its appeal and approving a spot ETF. Ripple Labs may also decide to file for an initial public offering.

XRP Price Chart and Risky Patterns

The daily chart suggests XRP may be forming two risky patterns:

A shooting star candlestick pattern, which often signals a bearish reversal.
A double-top pattern at $2.89, marked by two peaks and a neckline at $1.8958.

As a result, there is a risk that XRP may continue to decline over the next few days as part of a mean reversion, given that it remains significantly above the 50-day moving average. More sustained gains would be confirmed if XRP price breaks above its year-to-date high of $2.89.