The whole crypto market is currently painted in green by recording gains depending upon its own capacity. Bitcoin price is currently very close to breaking its all-time high above $19,800 any moment from now. The other top 10 assets like Ethereum, Litecoin, Bitcoin Cash, Polkadot, etc also flowed with the Bitcoin bull rally.
Surprisingly, Ripple’s native token XRP appears to remind unaffected by the bullish trend of bitcoin as the XRP price plunged drastically for a week. But why XRP remains out of the crowd rejecting bitcoin’s uptrend? Let’s have a closer look.
Spark Token Airdrop remains misty
The Flare network has announced an airdrop of its token Spark for the XRP holders. Most of the big exchanges and wallets also extended their support and announced publicly. This made the crypto space buy more XRP to get more free SPARK tokens. Thus increasing the volume of XRP to its peak.
But soon after 12 December 2020, which was the scheduled date for the airdrop, the active address plunged drastically. It might be because there were no clear updates about the airdrop which made many people dump their XRP holdings.
Popular Onchain analysis platform, Santiment put up a chart pointing out the steep decline of the unique XRP address after the snapshot.
Therefore, the XRP price declined with the immense selling of XRP might be due to the less clarity about the Spark tokens.
Ripple and former Ripple CTO dump millions of XRP
It a known fact that Ripple locks some mount of XRP in its escrow account. According to some sources, Ripple released over a billion XRP into the market recently. This may have negatively impacted the XRP price.
Moreover, Ripple sent 266 million XRP to the former founder XRP, Jed McCaleb which he liquidated 30 million XRP within no time. Therefore, infusing billions of XRP at the times when the other traders who had purchased XRP only to get free Spark tokens dumped their holdings, led to a massive XRP price drop.
Will XRP Price Rebound Back?
XRP price plunged from since the beginning of December 2020. It was speculated as a slight correction but the drop continued till it reached the current levels. However, many people anticipate the XRP price may rebound in 2021 but others have totally different perspective.
At the time of composition, XRP price stands at $0.466 with a drop of 5.16 percent in the last 24 hours. If we consider the weekly dip, the price are down nearly 17 percent. This is pretty huge as XRP is not among the cryptos which are known to rebound within a short span of time.
One of the user Galaxy Trading has termed the airdrop event as a ‘typical Ripple scam’ and speculated the current dip as a massive 45% correction. However, this correction may end soon as per him.