Ripple's XRP has experienced significant volatility recently, dropping more than $1 in a single day amid a broader market downturn. While its price has slightly recovered to above $2, caution remains warranted as its upward momentum appears to have stalled.
Recent data highlights XRP's turbulent journey. On January 17, XRP nearly reached its all-time high, hitting $3.39—just 1% below its 2018 record. Although it failed to break this milestone, XRP managed to sustain a price above $3 for several weeks. However, this stability was disrupted on Sunday morning when its price plummeted from $3.07 to $2.70, then further down to $2.50. A brief 10% rebound followed, but another major sell-off on Monday pushed prices lower again.
By Monday morning, XRP had sharply declined from $2.70 to below $1.80 on Bitstamp, marking its lowest point since Gary Gensler left the SEC in November. At the time of reporting, XRP had rebounded to above $2.20, but this still represents a 24% daily drop, reducing its market capitalization to under $130 billion. As a result, USDT has overtaken XRP as the third-largest cryptocurrency, now valued at $140 billion.
Additionally, XRP faces increased pressure from market "whales"—large investors holding significant amounts of XRP who can influence prices. Over the past 96 hours, these whales have sold more than 70 million XRP. According to analyst Ali Martinez, they continued offloading another 130 million XRP over the weekend. This shift in behavior, following earlier accumulation trends, suggests potential challenges for XRP's market stability.
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FAQs
Why did XRP drop below $2?
XRP's price decline was driven by a combination of broader market downturns and large-scale sell-offs by whale investors, who offloaded over 200 million XRP within a few days.
What caused USDT to overtake XRP in market cap?
USDT's rise to third place was primarily due to XRP's sharp price drop, reducing its market capitalization below USDT's $140 billion valuation.
Is XRP expected to recover soon?
While short-term recoveries are possible, continued whale selling and market volatility may prolong XRP's instability. Investors should monitor broader market trends and whale activity.
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Disclaimer: The information provided here is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.