- XRP experienced significant volatility this week, dropping 8.4% after hawkish comments from the Federal Reserve but recovering above $2 during the U.S. trading session.
- Optimism remains high as Ripple’s newly approved RLUSD stablecoin and supportive crypto policies could drive further gains, though risks of a decline to $1.50 linger.
The crypto market faced a bloodbath this week, with XRP taking a significant hit amidst widespread panic. Following hawkish remarks from the Federal Reserve concerning 2025’s monetary policies, XRP saw an 8.4% drop in just 24 hours, leaving investors on edge. However, as the American trading session unfolded, a dramatic recovery hinted at a resilient market.
XRP’s Wild Ride: Gains, Losses, and Recovery
Despite the recent plunge, XRP has had a stellar 2024, boasting a remarkable 252.6% gain since January. Its bullish trajectory was bolstered by a favorable court ruling in its long-standing legal battle with the SEC and pro-crypto sentiment ushered in by Donald Trump’s return to the presidency. The new administration’s blockchain-friendly stance, coupled with supportive lawmakers, promises to expedite regulatory clarity for the sector.
Today’s trading activity showcased XRP’s volatility. Prices fell to a critical support level at $1.95 before bouncing back above the $2 mark during the U.S. trading session. However, with the trend line support broken, the cryptocurrency’s next moves are uncertain.
RLUSD: The Game-Changer for Ripple
Adding to the excitement, Ripple’s CEO recently announced that the New York Department of Financial Services (NYDFS) approved its stablecoin RLUSD for commercialization. Once RLUSD hits major exchanges, it could potentially trigger a surge in network activity, marking a new chapter for Ripple and its blockchain ecosystem.
This development has sparked optimism among XRP enthusiasts, with some analysts predicting a price surge to $3 in the coming days. However, this optimism hinges on market stability and sustained momentum.
What Lies Ahead for XRP?
Technical indicators paint a mixed picture. The Relative Strength Index (RSI) has retreated from overbought territory, hovering near the neutral 50 mark. If this level holds, bullish momentum could continue. However, another sharp decline might push XRP to its next support level at $1.50, adding to investor uncertainty.
The broader crypto market is also showing signs of recovery. Solana (SOL) and Dogecoin (DOGE), which faced steep declines earlier, are clawing back losses, suggesting a potential market stabilization.
As 2024 winds down, XRP’s fate hangs in the balance. Will it break new highs fueled by RLUSD’s launch, or will further market turbulence send it below $1? Investors are watching closely, ready for the next twist in this volatile saga.
