Ripple’s Cryptocurrency Price Plummets 18% Within 36 Hours: Factors Contributing to Downturn Discussed

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

As of recent, Ripple’s cryptocurrency, XRP, has experienced a drastic plunge in value, plummeting by an astonishing 18% within a mere 36 hours. The price crash started after the asset’s cross-border token failed to maintain its momentum despite multiple highly bullish price predictions. As of this writing, XRP stands at $2.23, which is a six-day low.

The initial surge was triggered by Ripple’s announcement that its long-anticipated stablecoin would be launched on December 17. The positive movement continued as the asset skyrocketed to a multi-week peak of $2.73 on Bitstamp and other exchanges. However, this uptrend did not last, with XRP starting to retrace and eventually dropping to $2.5 earlier today before the market-wide correction caused it to plummet further.

The sudden price crash could be attributed to the overall crypto market drop, which was triggered by a Federal Reserve interest rate cut announcement. Nevertheless, Ripple’s retracement is more substantial than most, having fallen 11% in a single day and a staggering 15% within 36 hours.

A significant factor contributing to this downturn may be the “sell-the-news” phenomenon. It appears that investors have already incorporated XRP’s potential gains from its stablecoin launch into their expectations and subsequently sold the asset due to profit-taking, resulting in an immediate price drop after it failed to maintain momentum.

Another potentially influential factor is the bleak outlook on Ripple’s prospects of obtaining approval for a US Securities and Exchange Commission (SEC)-listed exchange-traded fund (ETF). Bloomberg’s Eric Balchunas has indicated that Ripple may be delayed behind other projects like Litecoin and Hedera, which could be greenlighted first. This potential setback may have caused investors to reassess their investment in XRP.

As the cryptocurrency market is known for its extreme volatility, it will be crucial to observe how the sentiment around XRP evolves moving forward.

Source: cryptopotato.com