XRP Prices Fall Over 15% After Reaching Highest Since November
XRP prices have taken a tumble lately, losing value after climbing to their highest in over four months.
The digital token, which serves as the native asset of the Ripple platform, fell to as little as $0.4094 this afternoon, according to CoinDesk data.
At this point, the cryptocurrency was down more than 17% from the recent high of $0.4933 it reached close to 5 p.m. EST last night, additional CoinDesk figures reveal.
Before reaching that value, its loftiest since November, the digital currency enjoyed an impressive rally, climbing more than 20% in under 24 hours.
When explaining these recent declines, analysts pointed to a handful of variables, including profit taking and regulatory uncertainty, as well as the market’s response to the ongoing lawsuit involving Ripple, some of its key executives, and the U.S. Securities and Exchange Commission.
This legal activity has generated significant visibility, as well as widespread support from the crypto community.
Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, weighed in on on these developments via email.
“XRP seems to be moving on the ongoing news about Ripple’s court battle, despite the company’s continued effort to distance themselves from the XRP token,” he stated.
“I believe the large move yesterday was caused by market participants positive view on how the case is proceeding with the SEC,” Sifling added.
“After a strong 20% move that was mainly based on rumor of this positive news, it makes sense that traders most likely took profits at levels they haven’t seen since last year,” he said.
“As people digested the news today, I believe they came to the realization that Ripple’s court battle isn’t quite over yet and the decision could go either way,” Sifling continued.
“While euphoria of the positive developments subsided today, reality of the difficult situation Ripple has found themselves in has started to creep in again and could have spilled over into the XRP token’s trading action.”
Marouane Garcon, cofounder of cross-chain decentralized exchange WhaleSwap, also offered his perspective on the the digital currency’s recent decline, emphasizing the impact of regulatory uncertainty.
“I think it’s a sign that some token holders may not be as confident about the SEC case as others,” he stated.
“So, some of them are taking money off the table. That’s to be expected.”
He added that traders are more sensitive to the impact of price fluctuations right now, as the market has been displaying reduced volatility.
“I also think the market hasn’t been as kind recently so 20% in a single day means more to investors in these conditions,” he stated.
Andrew Rossow, who is both an attorney and also the founder and CEO of AR Media, shed some light on the situation.
He agreed that profit taking helped drive XRP’s recent declines, but he also emphasized the impact that regulatory uncertainty is having on the mindset of investors.
“I think another consideration is the current grey area we are operating in with pending SEC litigation, especially with the ongoing Dapper Labs and NBA TopShot case,” said Rossow.
“Right now, people are scared and they want to guard their investments — even if that means taking out,” he stated.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.
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