Why did XRP price drop after Garlinghouse’s 60 Minutes interview?

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market reversals and trends. The recent drop in XRP price, mirroring the performance of Bitcoin and other altcoins, is not an unfamiliar sight to me. However, it’s important to remember that every downturn is just another opportunity for growth.

On December 9th, the value of XRP experienced a significant downward shift, which was similar to the trend seen in Bitcoin and other alternative cryptocurrencies.

The cryptocurrency XRP dipped to a record low of $2.40, marking a decrease of approximately 16.2% from its peak this year. This decline in value has reduced the market capitalization of XRP to around $138 billion.

Following his appearance on the renowned CBS show “60 Minutes”, Brad Garlinghouse, CEO of Ripple Labs, expressed in a subsequent post that certain details had been omitted during the editing process.

In particular, Garlinghouse pointed out that the show 60 Minutes failed to discuss XRP’s classification as non-security, a categorization backed by a federal judge in 2023.

Additionally, he voiced his disapproval towards the program, stating it suggested XRP had no purpose, drawing a comparison between this viewpoint and early criticisms of the internet. Garlinghouse emphasized that Ripple Labs process vast amounts of KYC-compliant transactions for institutional clients, totaling billions of dollars.

Cryptocurrencies were introduced on 60 Minutes tonight, and it’s clear they’re destined for mainstream acceptance, expanding their impact and presence. Here are some thoughts following the broadcast:

— Brad Garlinghouse (@bgarlinghouse) December 9, 2024

Ripple’s latest data shows that the network processed approximately 172 million transactions during the third quarter, marking a significant 99% annual growth. Additionally, it destroyed 598,477 XRP tokens derived from transaction fees, representing a 21% rise compared to the same period in the previous year.

Over recent months, the value of XRP has shown remarkable growth, placing it among the top-performing digital currencies. In fact, it skyrocketed an impressive 382% from its record low in November, earning it the title of the third largest cryptocurrency on the market.

The enthusiasm for this gathering stemmed from the expectation that the Securities and Exchange Commission under Donald Trump’s leadership would take a more favorable approach towards cryptocurrencies, contrasting with the period when Gary Gensler was in charge.

Accordingly, it’s expected that Paul Atkins could choose to drop the ongoing appeal by the agency. Additionally, there’s a possibility that the agency might give the green light for a Spot XRP ETF as early as 2025.

Has the XRP price peaked?

Last week, the weekly graph indicated that the value of XRP peaked at $2.90, but after Brad Garlinghouse’s appearance on 60 Minutes, it has fallen to $2.40.

As a seasoned crypto investor with over a decade of experience under my belt, I’ve learned to keep a close eye on market trends and adapt quickly to changing conditions. This week has been a reminder of that lesson yet again, as I’ve seen Bitcoin and other altcoins start the week in the red, mirroring a broader market downturn. However, despite the pullback, I’m encouraged by XRP’s performance. Its recent price action has shown resilience, with it currently holding above the key resistance level of $1.9700, a price point it reached back in April 2021. This gives me hope that the coin may be poised for further growth in the coming days and weeks. I’ll continue to monitor the market closely and make adjustments as necessary, but for now, I remain cautiously optimistic about XRP’s potential.

Ripple is still significantly above the 50-week and 200-week Exponential Moving Averages.

It seems reasonable to expect that the price of XRP might fall back towards $1.9700 to test its support, after which it could potentially continue its upward trajectory. The ‘break-and-retest’ pattern, which often appears in market trends, serves as a clue for this potential continuation.

Further XRP price gains are expected if the coin surpasses the year-to-date high of $2.90.

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2024-12-09 18:08