XRP’s price has dropped by over 11% in the past 24 hours, after teasing a possible bullish breakout earlier this week. This decline brought the price down to a critical support level of around 54 cents during the early Asian session on Thursday.
With a fully diluted valuation of $54 billion and an average daily trading volume of $3.3 billion, XRP became the biggest loser among the top 50 cryptocurrencies in the last 24 hours.
What triggered this dramatic reversal? What factors are driving XRP’s price downward? Keep reading to find out.
The initial market hype and FOMO triggered by the announcement that Bitwise filed an XRP ETP with the US SEC dramatically waned after the agency filed an appeal to Judge Analisa Torres’ ruling. XRP investors expressed notable disappointments amid an anticipated bullish breakout to a new all-time high.
As the SEC’s appeal is likely to take months, many XRP holders are shifting to other promising altcoins. Analysts predict the crypto market could see a new bull run, similar to gold, which may benefit altcoins more than large-cap coins like XRP.
On-chain data shows whale investors have transferred over $30 million worth of XRP to exchanges like Bitso and Bitstamp in the past 24 hours. Earlier in the week, Ripple unlocked 1 billion XRP but returned 800 million to escrow. These large movements suggest caution among major investors.
With the SEC appeal still ongoing, XRP holders may face more price drops as Ripple sells more tokens to cover legal expenses. Ripple has admitted before that its business is not profitable without its monthly XRP sales, which could further weigh on the price.
From a technical standpoint, XRP recently lost support between 60 and 58 cents, weakening the chances of a bullish breakout. Popular crypto analyst Credibull Crypto noted that XRP needs to hold its support level at 54 cents to avoid dropping further toward 43 cents.
Is it time to diversify your crypto portfolio away from XRP? Share your thoughts.
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