The cryptocurrency market experienced a notable shift in early December 2025, as XRP temporarily lost its position as the third-largest digital asset by market capitalization. This change followed Ripple’s unexpected announcement delaying the launch of its U.S. dollar-pegged stablecoin, RLUSD, pending regulatory approval from the New York Department of Financial Services (NYDFS).
Ripple Postpones RLUSD Stablecoin Launch
In a concise yet impactful message posted on X (formerly Twitter), Ripple confirmed:
“$RLUSD isn’t launching today. We’re in lockstep with the NYDFS on final approval and will share updates as soon as possible.”
The company reaffirmed its commitment to regulatory compliance, emphasizing that the launch will occur only under official supervision and in adherence to the highest standards.
This delay, though framed as a procedural necessity, triggered immediate reactions across financial markets. Investors had been anticipating the RLUSD rollout as a major milestone for Ripple’s expansion into the rapidly growing stablecoin ecosystem.
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Market Reaction: XRP Drops 11%, Loses Top-3 Spot
Within 24 hours of the announcement, XRP’s price declined from $2.59 to $2.31 — a drop of nearly 11%. According to CoinMarketCap data, this fall caused XRP’s market cap to shrink to $131.42 billion, down 12% in a single day and allowing Tether (USDT) to reclaim the third spot with a market cap of $135.8 billion.
Trading volume also saw a significant contraction, plunging 40% to $26.02 billion. More alarmingly, futures trading activity for XRP halved — dropping from over $32 billion to just $16 billion on December 4 — signaling reduced investor confidence and diminished speculative interest in the near term.
Glassnode analytics indicate that the news catalyzed a wave of panic selling, particularly among short-term holders who reacted swiftly to the uncertainty surrounding Ripple’s roadmap.
Despite this setback, XRP continues to outperform other major cryptocurrencies like Solana (SOL) and Binance Coin (BNB), even as BNB reached a new all-time high on the same day. This resilience suggests underlying strength in XRP’s investor base and continued belief in its long-term utility.
Technical Analysis: Consolidation Near Key Support
Technical indicators point to a period of consolidation for XRP. The price has stabilized near the $2.20 support level after testing a low of $2.166, while resistance looms at $2.50. A bearish trend line is forming, suggesting potential downward pressure if bullish momentum fails to reemerge.
Bollinger Bands analysis reveals narrowing volatility, indicating that traders are in a wait-and-see mode ahead of potential breakout signals. The price previously faced rejection at $2.74451 and has since retraced from a swing high of $2.865.
Currently, XRP is trading below both the $2.50 psychological level and the 100-hour Simple Moving Average (SMA), with immediate resistance now forming near $2.40.
Key Technical Indicators:
- Relative Strength Index (RSI): Below 50, signaling weakening bullish momentum
- MACD: Showing declining positive momentum, with potential for further downside
- Support Levels: $2.20 (critical), followed by $2.16
- Resistance Levels: $2.40 (near-term), $2.50 (strong), and $2.74 (swing high)
Why RLUSD Matters for Ripple’s Strategy
RLUSD isn't just another stablecoin — it's a strategic component of Ripple’s On-Demand Liquidity (ODL) solution, which aims to revolutionize cross-border payments by eliminating pre-funded accounts through instant settlement using digital assets.
By launching a regulated U.S. dollar-backed stablecoin, Ripple intended to strengthen its partnerships with financial institutions and enhance transaction efficiency across global corridors. The delay, while expected by some insiders due to ongoing regulatory scrutiny, disrupts near-term adoption plans and investor expectations.
The broader stablecoin market remains robust, recording a 24-hour trading volume of $317.13 billion — underscoring strong demand for fiat-pegged digital currencies. Ripple’s absence from this space, even temporarily, leaves room for competitors like USDT, USDC, and upcoming entrants to solidify their dominance.
👉 Learn how stablecoins are transforming global payments infrastructure.
Market Sentiment and Outlook
Hourly price action shows XRP fluctuating between $2.20 and $2.50, reflecting indecision among traders. While some see the dip as a buying opportunity ahead of future catalysts — including potential resolution of Ripple’s ongoing SEC litigation — others remain cautious until clearer regulatory clarity emerges.
Despite short-term volatility, many analysts believe XRP retains strong fundamentals driven by institutional use cases and real-world payment applications.
Frequently Asked Questions (FAQ)
Q: Why did XRP’s price drop after the RLUSD delay?
A: The delay dashed near-term expectations for Ripple’s expansion into the stablecoin market, triggering profit-taking and risk-off sentiment among traders.
Q: Is XRP still among the top cryptocurrencies by market cap?
A: As of December 2025, XRP ranks fourth behind Bitcoin, Ethereum, and Tether — narrowly behind USDT but ahead of Solana and Binance Coin.
Q: What is RLUSD and how does it relate to XRP?
A: RLUSD is Ripple’s planned U.S. dollar-pegged stablecoin designed to work within its ODL network. While not replacing XRP, it complements it by improving liquidity and settlement efficiency.
Q: Could future regulatory approval boost XRP again?
A: Yes — any positive regulatory development, including NYDFS approval for RLUSD or progress in the SEC case, could reignite investor confidence and drive price appreciation.
Q: What are the key support levels for XRP right now?
A: The most critical support is at $2.20; if broken, the next level lies around $2.16–$2.17. Holding above $2.20 increases chances of a rebound toward $2.50.
Q: How does low futures volume affect XRP’s price outlook?
A: Reduced futures trading suggests diminished leverage and speculation, often preceding either consolidation or a breakout once volume returns.
Final Thoughts
While the postponement of RLUSD has introduced short-term uncertainty, Ripple’s long-term vision remains intact. Regulatory hurdles are part of the maturation process for enterprise-grade blockchain solutions, and Ripple’s cautious approach may ultimately strengthen trust among institutional partners.
For investors, the current price action offers a chance to reassess XRP’s role in diversified crypto portfolios — not just as a speculative asset, but as a foundational piece of next-generation financial infrastructure.
As the market awaits further updates from Ripple and NYDFS, all eyes remain on whether XRP can reclaim its momentum and break past resistance levels in the coming weeks.
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