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XRP Price Dropped 10% in 7 days, What Happened?

Discover why XRP fell 10.49% to $0.51, influenced by ETF news, SEC disputes, and whale activity in the volatile crypto market.

Kieth Rean Garcia

Kieth Rean Garcia

January 24, 2024 5:01 PM

XRP Price Dropped 10% in 7 days, What Happened?

Today, January 24, XRP has experienced a notable decline, falling 10.49% in just 7 days, bringing its price down to $0.51. This significant drop is part of a broader trend affecting the cryptocurrency market, with various factors contributing to the downward movement of XRP’s price.

Factors Contributing to the Price Drop

The decline in XRP’s price is primarily due to negative technical trends. The cryptocurrency has been following a broader downtrend, typically initiated when its price tests a multi-month descending trendline resistance. Currently, XRP is dealing with another critical technical threshold, a multi-month ascending trendline support. Historically, this has indicated the start of more significant recoveries, but the current bearish momentum, as evidenced by the price trading below key moving averages and the Relative Strength Index (RSI) suggesting oversold conditions, suggests a different scenario.

Disappointment Over ETF News

The market’s reaction to the potential launch of a spot XRP exchange-traded fund (ETF) in the U.S. has also played a role in the price decline. Expectations were high for BlackRock, the world’s largest asset manager, to introduce a spot XRP ETF. However, these hopes were dashed when BlackRock clarified that it had no plans for such a product, leading to a significant drop in XRP’s price.

Regulatory Challenges and Whale Distribution

Ripple, the company behind XRP, faces ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC), contributing to the regulatory uncertainty surrounding the cryptocurrency. This situation has likely dampened investor enthusiasm. Moreover, there has been a noticeable decrease in XRP supply held by its wealthiest investors, indicating active selling or redistribution of their holdings.

Conclusion

The recent 10.49% drop in XRP’s price over the past week to $0.51 is a result of a complex interplay of technical trends, market reactions to ETF news, regulatory challenges, and changes in whale distribution. These factors have collectively contributed to the bearish sentiment in the market, leading to the observed price drop. As the crypto market continues to evolve, it remains crucial for investors to stay informed about such dynamics that can significantly impact market movements.

Kieth Rean Garcia
Article By

Kieth Rean Garcia

Kieth is an Article Writer, Digital Nomad, Web3 Enthusiast, and NFT Gamer, currently based in the Philippines. Actively involved in the blockchain space for 3 years, his work spans across writing and exploring the potentials of Web3 and NFTs.

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