XRP Price Crash: Why Ripple's Digital Asset Is Down by Double Digits

The recent crypto market crash has sent altcoins to bloodbath, and ripple's XRP is no exception. XRP's price has fallen by double digits in the

Altcoins have suffered a bloodbath in the recent crypto market crash, and XRP is no exception. Its price has dropped by double digits in the past few days, despite an earlier surge following the launch of Ripple’s stablecoin, RLUSD.

The main reason for this is the Federal Reserve’s interest rate cut and the FUD started by hawkish comments of Fed Chair Jerome Powell.

Here are some of the possible reasons for the XRP price crash, according to industry experts:

1. Market-Wide Correction:

Due to the Fed’s rate cut, the overall cryptocurrency market experienced a sell-off, which impacted XRP and other digital assets.

2. “Sell-the-News” Event:

In anticipation of the RLUSD launch, XRP's price had risen. However, some investors may have sold their holdings after the launch, leading to a price correction.

3. Uncertainty Regarding XRP ETF:

The potential approval of an XRP ETF in the US is still up in the air, with some experts suggesting that other cryptocurrencies, such as Litecoin and Hedera, might be prioritized. This uncertainty could be affecting XRP's price.

Like many other cryptocurrencies, XRP suffered from market losses. The Federal Reserve’s statement that it would reduce its anticipated rate cuts for 2025, which had contributed to the earlier euphoria in risk markets, including cryptocurrency, coincided with the recent drop

What Crypto Experts Say

Being a massive XRP skeptic, Messari’s founder Ryan Selkis didn’t hesitate to take a jibe at the current state of XRP. He joked that since the asset’s value has slipped below the total valuation of leading firms like Coinbase, MicroStrategy, and Softbank, it could be the best time to buy.

Having earlier slammed the XRP community, calling them “worthless bot groups,” he now testifies his hatred towards the cryptocurrency.

On the other hand, XRP advocate JackTheRippler is thanking everyone who sold XRP as their actions help people like him turn into XRP whales.

XRP Price Analysis

At the moment, XRP is trading around $2.16, indicating a 10% decrease in the last 24 hours. But, to the traders’ delight, the price seems to have found strong support just below its current level.

For a couple of weeks now, XRP has been rising almost vertically in the USDT pair. However, since the RSI showed a pronounced overbought signal, the market has been unable to maintain its upward trend and is currently cooling down and stabilizing.

However, after being tested earlier today, the $2 support level is still in place and has the potential to drive the price upward into the $3 level once more. But, if the $2 level were to be decisively broken, then a more significant decline toward the $1.4 level would be anticipated.

Also Read: XRP Withdrawals Delayed on Bithumb due to Unprecedented Demand