Ripple’s XRP price drops 18% in 36 hours after stablecoin launch

Ripple’s (CRYPTO:XRP) XRP price has fallen sharply by 18% in the past 36 hours, dropping from over $2.7 to under $2.25.

XRP had been one of the top performers among larger-cap altcoins until yesterday afternoon, but its price took a significant downturn thereafter.

The sudden drop raises questions as to whether this decline is simply due to the broader market retracement or if it can be attributed to another “sell-the-news” event.

Earlier this week, XRP was priced at around $2.35 before it surged to nearly $2.6 following Ripple’s announcement of a long-awaited stablecoin launch on December 17.

The positive price momentum continued into the launch day, as XRP spiked to a multi-week high of $2.73 on Bitstamp and other exchanges.

However, despite the initial excitement, XRP failed to maintain its upward trajectory.

Instead, the price began to retrace, dropping to $2.5 before the broader market correction triggered by the Federal Reserve’s latest rate cut pushed XRP down further to a six-day low of $2.23.

While this drop could be linked to the overall market downturn, XRP’s decline has been notably more significant, falling 11% in 24 hours and 15% in the last 36 hours.

The price plunge may be categorised as a “sell-the-news” event, considering that XRP’s price surged ahead of the RLUSD stablecoin launch but began to decline after the token became available for trading.

Additionally, concerns about the potential approval of an XRP ETF have surfaced, with Bloomberg’s Eric Balchunas suggesting that Ripple might be behind other projects, such as Litecoin and Hedera, in securing approval.

This delay could be attributed to Ripple’s ongoing legal battle with the US Securities and Exchange Commission, although a change in leadership within the agency in the coming months may alter the situation.

At the time of reporting, the price of XRP (XRP) was $2.25.