The recent drop in XRP prices is associated with a widespread altcoin selloff and several factors, including SEC actions and profit booking by investors.
Altcoin Selloff and Its Impact on XRP
Amid a general decline in altcoin prices, XRP witnessed the largest drop, losing over 11%. This decline is linked to overall market sentiment, where traders have become less confident in riskier assets. Bitcoin dominance rose to 61.3%, indicating a shift of investors to a more stable asset.
Uncertainty Surrounding SEC’s ETF
Recent actions by the SEC, which initially approved and then stayed the decision on the Bitwise ETF, have created uncertainty in the market. Investors are expressing concerns about the future of altcoins like XRP, given the ongoing attention to SEC decisions on ETFs.
Profit Booking and Ripple Co-Founder’s Moves
Profit booking by investors may also have contributed to the price drop. XRP has grown by 392% year-over-year, allowing many market participants to secure profits. Additionally, actions by Ripple co-founder Chris Larsen, who transferred 50 million XRP worth $175 million, have sparked speculation about further price declines.
XRP prices continue to be under pressure due to factors affecting the overall cryptocurrency market. Nevertheless, some investors remain optimistic about future movements of XRP.
