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Why Did Ripple’s (XRP) Price Crash by 18% in 36 Hours?
Ripple’s XRP token has experienced a dramatic price crash of 18% within the span of just 36 hours, causing concern and confusion among investors. Yesterday, XRP was trading at over $2.7, only to plummet to under $2.25 minutes ago.
The asset initially rose from around $2.35 to almost $2.6 following the company’s announcement that its long-awaited stablecoin would be launched on December 17. The positive movements continued on the launch date as XRP skyrocketed to a multi-week peak of $2.73 (on Bitstamp and other exchanges). However, Ripple’s cross-border token failed to maintain its momentum despite multiple highly bullish price predictions.
Instead, it began retracing and dropped to $2.5 earlier today before plummeting south violently after the Fed’s latest rate cut pushed it down to a six-day low of $2.23. Although this plunge could be attributed solely to the overall crypto market drop, XRP’s retracement is more painful than most, being down by 11% on a 24-hour scale and by 15% on a 36-hour one.
This sudden crash can potentially fit under the “sell-the-news” category, given that XRP jumped ahead of the RLUSD launch and its price has tumbled after the new token actually went live for trading. Additionally, the situation surrounding a potential Ripple ETF in the States doesn’t appear too bright, at least according to experts on the matter.
As reported earlier, Bloomberg’s Eric Balchunas cautioned that Ripple might be behind other projects that could be greenlit first, such as Litecoin and Hedera. He predicted that this wait could be related to Ripple’s ongoing legal tussle with the US Securities and Exchange Commission even though there will be a seismic shift in the agency’s leadership in the next few months.
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Source: cryptopotato.com
