Ripple’s native token, XRP, experienced a sharp 6% decline on Wednesday, dropping from an intraday high of $2.68 to close at $2.3574.
This downturn knocked XRP out of its position as the third-largest cryptocurrency by market capitalization, with Tether’s USDT taking its place at $135.8 billion.
The price drop came amid Ripple’s announcement that it would delay the launch of its $RLUSD stablecoin, fueling market uncertainty and raising investor concerns.
XRP Token Faces Decline Amid Panic Selling Concerns
Ripple revealed on Wednesday that the launch of its $RLUSD stablecoin would be postponed, citing the need for final approval from the New York Department of Financial Services.
While the decision was made to ensure regulatory compliance, the announcement created uncertainty in the market, affecting XRP’s performance.
In the wake of the announcement, XRP trading volumes plunged from $32 billion to $16 billion, highlighting mounting selling pressure.
Overall, the token’s 24-hour trading volume dropped nearly 40%, settling at $26.02 billion.
Adding to the challenges, a broader surge in stablecoin activity may also be influencing XRP’s downturn.
Over the past day, stablecoin volumes surged by 26.88%, reaching $327.85 billion, further shifting market dynamics.
Analysts, however, maintain an optimistic outlook for XRP’s recovery.
Market commentator @ergagcrypto noted that the token is unlikely to dip below the $2 mark again.
Ripple’s SEC Case Nears Conclusion, Boosting XRP Token Prospects
Ripple’s long-standing legal battle with the U.S. Securities and Exchange Commission (SEC) may finally be nearing an end.
Gary Gensler, the current SEC chairman, is set to step down in January, and market watchers speculate that his successor, Paul Atkins, could take a more crypto-friendly stance.
Atkins, known for supporting innovative financial technologies while ensuring regulatory compliance, might influence Ripple’s ongoing legal challenges favorably.
Ripple CEO Brad Garlinghouse’s recent meeting with Donald Trump has added to the speculation.
While details of the discussion remain private, some believe it could lead to favorable legislation or even strategic partnerships that would benefit Ripple.
Investors and market watchers are now eyeing January with cautious optimism, wondering if this could finally be the moment Ripple turns the tide in its favor.
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