Ripple’s XRP (XRP-USD) has taken a hit despite the much-anticipated launch of its RLUSD stablecoin on December 17, 2024. The cryptocurrency, which initially spiked to $2.73 following the announcement, quickly lost steam, dropping 17.5% in the past 24 hours.
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Launch Sparks Brief Rally Before Steep Decline
Market analysts are calling this a classic “sell-the-news” scenario. Eric Balchunas from Bloomberg noted that such events often see prices rise ahead of major announcements only to fall post-launch. Ripple’s stablecoin is considered a significant move for the company, yet the broader market correction kept XRP under pressure.
Delayed ETF Approvals Raise Questions
Adding to the uncertainty, XRP’s potential ETF approval is still in limbo. Though several filings are under review by the SEC, experts believe other projects like Litecoin or Hedera might leapfrog XRP for approval.
Leadership Changes Could Shift Regulatory Landscape
SEC leadership changes in January could alter the trajectory for XRP. With Gary Gensler stepping down, many in the crypto space are optimistic about a more favorable environment for Ripple’s ETF aspirations.
For now, XRP holders are waiting to see if Ripple’s partnerships and legal progress can reignite bullish momentum.
At the time of writing, XRP is sitting at $1.9842.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
