XRP Takes a Hit: Crypto Market Crash Drags Down Ripple Token

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market volatility and crashes. The recent downturn in the crypto market, including XRP, is no exception. While the launch of Ripple’s stablecoin, RLUSD, initially boosted XRP’s price, it seems that the overall market sentiment has taken a turn for the worse.

1) The latest drop in the cryptocurrency market has led to a mass sell-off, with altcoins being particularly affected, and ripple’s XRP is among them. Over the past few days, the value of XRP has plummeted by double digits, despite an earlier rise due to the introduction of Ripple’s stablecoin, RLUSD.

The primary cause behind this situation is the reduction in interest rates by the Federal Reserve, as well as the fear-inducing remarks made by Fed Chair Jerome Powell.

Why XRP Price Crash

Among the possible explanations for the decline in XRP’s value, as suggested by industry analysts, are:

1. Market-Wide Correction:

Due to the Federal Reserve’s decision to lower interest rates, there has been a widespread selling of cryptocurrencies, affecting not only XRP but also various other digital currencies.

2. “Sell-the-News” Event: 

Initially, there was an upward trend in XRP’s value as people expected the introduction of RLUSD. But following its release, some investors may have chosen to cash out their gains, causing a subsequent drop in XRP’s price.

3. Uncertainty Regarding XRP ETF: 

The potential approval of an XRP ETF in the US remains uncertain, with some experts suggesting that other cryptocurrencies like Litecoin and Hedera might be prioritized. This uncertainty could be weighing on XRP’s price.

XRP, like many other cryptocurrencies, has suffered from market losses. It 

In simpler terms, when the Federal Reserve announced it might not make as many interest rate reductions as initially expected in 2025, this decision contributed to the recent dip in risky markets such as stocks and cryptocurrencies. This adjustment in the Fed’s stance came at a time when these markets were experiencing a period of optimism.

What Crypto Experts Say

Ryan Selkis, who established Messari, didn’t mince words in his critique of the current state of XRP. In a playful manner, he suggested that since the asset’s value has dropped below the total worth of major companies like Coinbase, MicroStrategy, and Softbank, this might be an opportune time to invest.

His previous criticism of the XRP community, where he referred to them as “worthless bot groups,” suggests a strong dislike or animosity towards the cryptocurrency on his part.

Meanwhile, XRP supporter JackTheRippler is expressing gratitude towards those who sold XRP. It’s the actions of these individuals that contribute to the creation of “whales” like himself in the XRP market.

XRP Price Analysis

Currently, XRP’s value hovers near $2.16, representing a decrease of approximately 10% over the past day. However, this dip has seemingly met resistance at its current point, offering a glimmer of optimism for traders.

Over the past few weeks, XRP has experienced a steep increase when paired with USDT. Yet, as the Relative Strength Index (RSI) indicated an oversold condition, the market momentum couldn’t sustain its upward trajectory and now seems to be leveling off and cooling down.

As a researcher, I’ve recently observed that the $2 support level remains intact and could potentially propel the price further upwards towards the $3 mark. Yet, it’s crucial to note that a substantial drop towards the $1.4 level might ensue if the $2 level shows signs of being breached decisively.

Also Read : XRP Withdrawals Delayed on Bithumb due to Unprecedented Demand

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2024-12-20 19:50