Between selling pressure and volatility of the crypto market

XRP is not escaping the turmoil observed at the end of this summer in the financial markets. The crypto asset shows a significant loss, raising questions about its ability to recover in the short term.

XRP below 0.50 USD: An unexpected drop

The XRP price has experienced a sharp drop, falling below the 0.50 USD mark. After reaching 0.657 USD in July, the crypto asset plummeted drastically in August. Over the past seven days, it has notably lost nearly 34% of its value and is now trading around 0.491 USD. This drop occurred while traders had high expectations for the altcoin. They were hoping for a continued rise in the asset’s price, especially with the imminent end of Ripple’s lawsuit against the U.S. Securities and Exchange Commission (SEC).

However, the market reality quickly recalibrated these expectations. The situation was exacerbated by the recent release of about one billion XRP tokens by Ripple. A move that contributed to increased selling pressure. It should be noted, however, that the decrease in XRP’s price is part of a broader crash in the crypto market. This situation, caused by factors such as geopolitical uncertainty and high-interest rates, has alarmed most investors.

Correlation with Bitcoin: A double-edged sword for the crypto asset

The performance of XRP is closely tied to that of Bitcoin, the principal cryptocurrency in the market. However, BTC’s price has significantly declined in recent days, reaching 54,565 USD. The flagship crypto asset has dragged XRP down with it. This dependency of XRP on Bitcoin is therefore a risky asset, amplifying the effects of the market leader’s fluctuations on Ripple’s token.

The fall of XRP in August highlights the current difficulties in the cryptocurrency market. The marked decrease in the token, combined with increased selling pressure and Bitcoin’s volatility, underscores the challenges for Ripple.

As uncertainty persists, the prospects for XRP remain unclear. Will Ripple’s token continue to collapse? Only time will tell if the crypto asset will manage to stabilize and regain an upward trajectory.

Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.