XRP Price Retreated on Wednesday as a Sea of Red Spread Across the Cryptocurrency Industry

Ripple (XRP) dropped by over 5%, erasing most of the gains made on Tuesday after the RLUSD stablecoin launch.

XRP price dropped on Wednesday evening as the cryptocurrency industry faced broad sell-offs ahead of the Federal Reserve’s final interest rate decision for the year.

The decline led to significant liquidations of bullish positions, totaling over $15.19 million. Notably, over $4.6 million in short positions were also liquidated.

Ripple (XRP) dropped by over 5% on Wednesday evening, erasing most of the gains made on Tuesday following the launch of the RLUSD stablecoin.

The decline in XRP price came amid broad sell-offs in the cryptocurrency industry as traders anticipated the Federal Reserve’s final interest rate decision for the year.

According to data from CoinGlass, the liquidations were primarily concentrated in the perpetual futures markets of major cryptocurrency exchanges such as Binance, Huobi, FTX, Deribit, BitMEX, Bybit, OKX, Phemex, Gate, and Kraken.

интересно, что более 80% из всех ликвидаций пришлось на XRP. В частности, на крупнейшей криптовалютной бирже Binance произошло ликвидаций на сумму более $12.29 млн.

On the other hand, XRP’s retreat, which was anticipated, happened a day after the company launched the RLUSD stablecoin. According to CoinMarketCap, the stablecoin began well, attracting over $53 million in assets. Its 24-hour volume also crossed $550,000.

The RLUSD stablecoin now faces stiff competition in an already saturated market. Tether (USDT) remains the dominant stablecoin, holding over 60% market share. It is followed by USD Coin (USDC), Ethena USDe (USDe), USDS, and Dai (DAI). Other notable stablecoins include First Digital USD (fUSD) and Justin Sun’s USDD.

интересно, что даже запуски стейблкоинов крупных брендов показывают слабые результаты. Например, стейблкоин PayPal (PYUSD) имеет рыночную капитализацию в $447 млн, несмотря на большое присутствие компании в финтех-пространстве. Аналогичным образом, USDD, запущенный в 2022 году, застрял на уровне в $745 млн за последние два года.

XRP price may reflect profit-taking following the RLUSD launch and nervousness about the Federal Reserve’s final interest rate decision for the year. Economists expect a “hawkish cut,” where the Fed reduces rates by 0.25% while signaling a potential pause in 2025. Concerns stem from inflationary policies under President-elect Donald Trump, such as deportations and tariffs.

Still, XRP has potential catalysts ahead. The new Securities and Exchange Commission may abandon its appeal and approve a spot ETF. Ripple Labs may also decide to file for an initial public offering (IPO).

XRP price forming risky patterns?

A look at the daily chart suggests that XRP may be forming two risky patterns.

First, it formed a shooting star candlestick pattern on Tuesday, which consists of a small body and a long upper shadow, often signaling a bearish reversal.

Also, XRP price may be forming a double-top pattern at $2.89. This pattern is marked by two peaks and a neckline, which lies at $1.8958, its lowest level this month.

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.