Why Did Ripple’s (XRP) Price Crash by 18% in 36 Hours?

As a seasoned analyst with a decade of experience in the cryptosphere, I’ve seen my fair share of market volatility and the occasional ‘buy-the-rumor, sell-the-news’ scenario. The recent performance of XRP has been intriguing, to say the least.

TL:DR;

  • XRP was the top performer from the larger-cap alts until yesterday afternoon, but its price has tumbled hard by double digits since then.
  • Could that be related only to the market-wide retracement, or is there more to the story, such as another ‘sell-the-news’ event?

Remember the changes in XRP’s price that occurred earlier this week? Initially, the asset was valued at approximately $2.35, but it skyrocketed to nearly $2.6 on Monday night following the company’s announcement of launching its eagerly awaited stablecoin on December 17th.

On the scheduled launch day, the upward trend persisted with XRP reaching its highest point in several weeks at approximately $2.73 (across platforms like Bitstamp and others).

Yet, even though numerous positive price forecasts were made for Ripple‘s cross-border token, it struggled to sustain its upward trend.

Initially, I saw my crypto investment soaring, but then it unexpectedly reversed course today, plunging to around $2.5 due to the market-wide correction that followed the Fed’s recent rate cut. This downward spiral took it to a 6-day low of $2.23.

As a crypto investor, I’ve noticed that the recent dip in the market has been particularly harsh on XRP. Over the past 24 hours, it’s dropped by 11%, and over the last 36 hours, the loss is even more substantial at 15%. This downturn for XRP seems to be more pronounced than many other cryptocurrencies in my portfolio.

Given these circumstances, it seems appropriate to categorize this event as ‘hype-then-crash’ situation. This is because prior to the launch of RLUSD, XRP surged ahead, only for its price to decline significantly once the new token became available for trading.

From my perspective as an analyst, it appears that the outlook for a potential XRP ETF in the U.S. isn’t particularly promising, based on the insights of experts in the field. Previously, Eric Balchunas of Bloomberg expressed concerns that Ripple might be overshadowed by other projects that could receive approval before it, such as Litecoin and Hedera.

According to the ETF specialist, the delay might be connected to Ripple’s ongoing legal dispute with the U.S. Securities and Exchange Commission, despite an upcoming change in the agency’s management team within the coming months.

Read More

2024-12-19 00:30