The launch of Ripple’s RLUSD stablecoin was expected to be a bullish catalyst for XRP. However, shortly after the announcement, XRP price dropped by nearly 15%, sparking confusion and concern among investors. While the timing might suggest a direct link between the RLUSD launch and the price decline, a deeper analysis reveals that broader macroeconomic forces—particularly decisions made by the U.S. Federal Reserve—are the primary drivers behind this market-wide correction.
In this article, we’ll explore the real reasons behind XRP’s recent price drop, examine whale activity during the selloff, and analyze key technical levels that could determine its next major move.
Market-Wide Selloff Sparks XRP Decline
On December 17, 2025, Ripple officially launched RLUSD, its new U.S. dollar-pegged stablecoin, marking a significant milestone in its expanding financial ecosystem. Despite the positive development, XRP’s price quickly turned south, falling from $2.72 to $2.17 within 24 hours—a 15% drop that mirrored broader crypto market trends.
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This downturn coincided with the Federal Open Market Committee (FOMC) meeting on December 19, where the Fed announced a 25-basis-point interest rate cut. While rate cuts are typically seen as positive for risk assets like cryptocurrencies, the market reaction was unexpectedly bearish. The reason? The Fed signaled only two rate cuts in 2025, far fewer than the four many investors had anticipated.
This more hawkish-than-expected stance led to a wave of profit-taking across digital assets. Over $800 million in long positions were liquidated in a single day, affecting Bitcoin, Ethereum, Solana, Dogecoin—and notably, XRP.
Although RLUSD’s launch was a fundamental upgrade for Ripple’s infrastructure, short-term price movements often reflect macro sentiment more than project-specific news. In this case, macroeconomic caution overshadowed even strong project developments.
Whales Step In Amid the Sell-Off
Despite the sharp price drop, on-chain data reveals a potentially bullish signal: whale accumulation.
Large transactions—those exceeding $1 million—surged following the crash. According to analytics platform Santiment, whale transaction volume spiked significantly on December 18, echoing similar patterns seen after previous market dips on December 10 and December 2.
- December 2: 136 large transactions recorded
- December 10: 65 large transactions
- December 18: Sharp increase indicating renewed institutional or high-net-worth interest
This repeated behavior suggests that savvy investors may view these pullbacks as buying opportunities. Historically, sustained whale accumulation has often preceded major price recoveries.
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While retail panic may drive short-term volatility, whale activity indicates growing confidence in XRP’s long-term value proposition—especially with Ripple’s expanding suite of financial products like RLUSD and ongoing advancements in cross-border payment solutions.
XRP Technical Analysis: Key Levels to Watch
As of December 19, 2025, XRP is trading around $2.37, down 3% over the past 24 hours. The broader crypto market remains under pressure, with most altcoins following a similar downward trajectory.
RSI Shows Bearish Pressure—but Rebound Possible
The 4-hour Relative Strength Index (RSI) sits at 42, indicating bearish momentum but not yet in oversold territory. A move above the neutral 50 level would suggest strengthening buying pressure and could signal the start of a bullish reversal.
Support and Resistance Zones
- Immediate Support: $2.30
A break below this level could accelerate selling and open the door to deeper declines. - Stronger Support: $2.00
This psychological and technical level has held in past downturns. A drop to this zone could trigger strong buying interest, especially if supported by whale accumulation. - Upside Potential: $3.00
If macro conditions improve and confidence returns, a rebound toward $3 remains feasible. A sustained move above $2.50 would be an early sign of recovery.
While the current trend is bearish, the presence of strong support levels and increasing institutional interest suggests that any breakdown may be temporary.
Core Keywords Driving Market Discussion
Understanding search intent around XRP’s price action involves tracking key themes that resonate with investors:
- XRP price crash
- RLUSD stablecoin launch
- XRP technical analysis
- Whale accumulation XRP
- Fed interest rate impact on crypto
- XRP support levels
- XRP price prediction
- Crypto market selloff
These keywords reflect both technical and fundamental concerns driving user queries. By addressing them naturally throughout this analysis, we align with SEO best practices while delivering value-driven content.
Frequently Asked Questions (FAQs)
Why did XRP price drop after RLUSD launch?
Despite RLUSD being a positive development, XRP’s price fell due to broader market conditions triggered by the Fed’s hawkish guidance—only two rate cuts expected in 2025 instead of four—leading to a risk-off sentiment across crypto markets.
Was the RLUSD launch bad for XRP?
No. The RLUSD launch is a strategic advancement for Ripple’s ecosystem. The price drop was unrelated to RLUSD itself but rather a reaction to macroeconomic news from the FOMC meeting.
Are whales buying XRP during the crash?
Yes. On-chain data shows a significant increase in large transactions (> $1 million) following the price drop, indicating potential accumulation by institutional or high-net-worth investors.
What are the key support levels for XRP?
The immediate support is at $2.30**, with stronger support at **$2.00. A break below $2 could lead to further downside, while holding above $2.30 improves chances of recovery.
Could XRP rebound to $3?
Yes. If market sentiment improves and RSI crosses above 50, a move toward $3 is possible. Bullish momentum would need to build above $2.50 to confirm sustained recovery.
How does Fed policy affect XRP price?
Crypto markets are highly sensitive to U.S. monetary policy. Hawkish signals (fewer rate cuts) reduce liquidity expectations, leading to risk-off behavior and selloffs in speculative assets like XRP.
Final Thoughts: Volatility Meets Opportunity
The recent dip in XRP price following RLUSD’s launch underscores a critical truth in cryptocurrency investing: short-term price action is often driven by macro forces, not fundamentals.
While Ripple continues to strengthen its real-world utility with innovations like RLUSD, external factors such as Federal Reserve policy can easily overshadow even the most promising project updates.
However, signs of whale accumulation and strong technical support levels suggest that this correction may present a strategic entry point for long-term holders.
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As always, investors should conduct thorough research and consider both technical indicators and macroeconomic trends before making decisions. With volatility comes risk—but also opportunity—for those prepared to navigate it wisely.
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