XRP's price has taken a significant hit today, driven by a broader downturn in the cryptocurrency market as investors brace for the Federal Reserve's interest rate decision. The anticipation of a "hawkish cut" by the Fed, which involves a 0.25% rate reduction while signaling a potential pause in 2025, has created a wave of uncertainty. This has led to a retreat in XRP's price, erasing gains made after the recent launch of Ripple's RLUSD stablecoin. The launch initially boosted XRP, but the excitement was short-lived as the market turned cautious ahead of the Fed's announcement.
The decline in XRP's price was further exacerbated by significant liquidations in the market. Over $15.19 million in bullish positions were liquidated, alongside $4.6 million in short positions, as traders adjusted their strategies in response to the volatile market conditions. The RLUSD stablecoin, despite its promising start with over $53 million in assets, faces stiff competition in a saturated market dominated by Tether and USD Coin. This competitive landscape, combined with the looming Fed decision, has contributed to the downward pressure on XRP.
XRP has experienced an 8.33% drop today, with its price currently at $2.351788, marking the lowest point of the day.