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Here’s Why Ripple (XRP) Value Is Falling Today
XRP price has continued its fall today, losing more than 10% during writing. The current retreat in Ripple’s coin comes amid a downturn momentum noted in the broader crypto market. So, here we explore some of the key reasons that might have contributed to the recent decline in the asset’s price and see what lies ahead for the crypto.
XRP Price Slips 10%: Why Is It Falling?
XRP price was down more than 10% during the writing and exchanged hands at $2, while its one-day trading volume stayed near the flatline at $6.93 billion. Notably, the crypto has hovered between the $2.25 and $1.99 range in the last 24 hours. Besides, the Relative Strength Index (RSI) of the asset also entered an oversold condition recently.
Ripple’s native asset has recorded a surge of more than 500% from early November to mid-January. However, the recent performance indicates that the momentum has been lost and the crypto has been consolidating in the $2-$2.5 range since then. Notably, the crypto has touched a local high of $3.39 in mid-January.
Meanwhile, XRP has lost nearly 25% over the last seven days, while witnessing a plunge of around 36% in the 30-day chart. But what are the factors that might have contributed to the recent losses of the crypto?
Why Is the Ripple Price Dropping Today?
There could be several factors that might have dragged down the Ripple (XRP) price recently. Here are the probable reasons for the recent loss:
Broader Crypto Market Crash
The gloomy sentiment in the broader digital assets space, as evidenced by the recent crypto market crash, might have contributed to the recent performance of the asset. For context, the global crypto market cap was down nearly 8% during writing.
Besides, nearly $560 billion has been lost from the market only this week, indicating the waning risk-bet appetite of the investors. Bitcoin price was down more than 8% and broke below the $79K level. Other top altcoins like Ethereum, BNB, Solana, DOGE, and others, have also lost around 10% each.
Declining Network Activity
The recent dip in XRP price could be due to declining network activity. In a recent analysis, renowned expert Ali Martinez highlighted the trend, which has gained notable traction from traders. Martinez showed that XRP network activity has dropped by 50% since December and active addresses on the network have decreased from 202,250 to 101,169.
This trend suggests that the decrease in network activity is a significant contributor to the falling XRP price recently. This decline in active addresses indicates a reduction in transactions and overall engagement on the XRP network.
Ripple Vs SEC Case Uncertainty
Another key factor could be the delay in Ripple Vs SEC case settlement. The US SEC has started dropping the crypto lawsuits, with many top cases already dismissed this week. However, with no official comments on the XRP lawsuit, it appears that it has dampened the investors’ sentiment.
However, top experts anticipate a resolution in the first half of the year. For context, in a recent X post, a top legal expert shared three crucial dates for the Ripple SEC lawsuit settlement, which has sparked market optimism.
What’s Next For XRP Price?
As XRP slipped significantly, the market pundits have shared critical insights for the investors. In a recent X post, expert Rose Premium Signals hints at a potential decline to $1.2578, highlighting it as a key support zone. However, the analyst noted that if Ripple’s coin holds this support, it could target $3 next and then the $4.22 mark.
Simultaneously, other experts have also predicted the Ripple price to slip to $1.6 recently. However, despite that, the pundits remained optimistic about the long-term trajectory of the coin. In a recent X post, CasiTrades said that XRP price correction might end at the $2 mark, indicating a strong recovery ahead.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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