XRP price slips as RLUSD market cap hits $53m, liquidations rise

XRP price fell on Wednesday as a red wave spread across the cryptocurrency industry ahead of the Federal Reserve’s decision.

Ripple (XRP) is down over 5%, erasing most of Tuesday’s gains following the RLUSD stablecoin launch.

The decline led to significant liquidations of bullish positions totaling more than $15.19 million. Liquidations occur when exchanges automatically close positions due to insufficient margin. Short positions worth over $4.6 million were also liquidated, according to CoinGlass.

Ripple’s anticipated pullback comes a day after the company launched its RLUSD stablecoin. The stablecoin is off to a good start, attracting over $53 million in assets, according to CoinMarketCap. Its 24-hour volume was over $550,000.

The RLUSD stablecoin faces stiff competition in an already saturated market. Tether remains the dominant stablecoin with over 60% market share, followed by USD Coin, Ethena USDe, USDS and Dai. Other notable stablecoins include First Digital USD and Justin Sun’s USDD.

History shows that even high-profile stablecoin launches can struggle. PayPal’s PYUSD, for example, has a market cap of $447 million despite the company’s massive fintech presence. Similarly, USDD, which was launched in 2022, has stalled at $745 million in the last two years.

The decline in XRP’s prices may reflect profit taking after the RLUSD launch and concern about the Federal Reserve’s final interest rate decision for the year. Economists expect a “hawkish cut” with the Fed cutting interest rates by 0.25%, signaling a potential pause in 2025. The concerns stem from inflationary policies such as deportations and tariffs under President-elect Donald Trump.

Still, there are potential catalysts ahead for XRP. The new Securities and Exchange Commission may drop its objection and approve the spot ETF. Ripple Labs may also decide to file for an initial public offering.

XRP price may be forming risky patterns XRP price chart | Source: crypto.news

The daily chart shows that XRP has formed two risky patterns. First, it formed a shooting star candlestick pattern on Tuesday, which consists of a small body and a long upper shadow, mostly signaling a bearish reversal.

Additionally, XRP price may be forming a double top formation at $2.89. This pattern is marked by two tops and a neckline, with this month’s low at $1.8958.

As a result, given that XRP remains significantly above the 50-day moving average, there is a risk that it may continue to decline over the next few days as part of a reversion to the mean. More sustainable gains will be confirmed if the XRP price rises above its year-to-date high of $2.89.