Why Is Ripple’s (XRP) Price Down by 17% Today?

TL:DR;

• XRP continues to dig new local bottoms as the asset slumped to a multi-day low of under $2 twice in the past 24 hours.
• This comes just a few days after some analysts speculated that Ripple’s token had already peaked during this cycle.

Recall XRP’s massive price surge that started shortly after Donald Trump’s victory in the US presidential elections and intensified when current SEC Chair Gary Gensler said he will depart from his position on January 20, 2025.

The cross-border token skyrocketed by over 400% within the span of a month, going from under $0.6 to almost $3 to chart its highest price tag since January 2018.

However, this is where the landscape changed for the asset as it quickly started to lose momentum even though the community was anticipating a break through $3 and potentially a new all-time high above $3.4.

CryptoPotato reported on December 5 that XRP had dumped by 17% in just two days, and many started to speculate that it had already peaked during this cycle and will continue to retrace in the following days.

They justified their position by attributing the substantial gains charted during most of November to the hype around the changes coming in the States and in the SEC, in particular. Once Trump made his announcement about the new SEC Chair, who is indeed pro-crypto, XRP started to dump hard – a classic ‘sell-the-news’ event.

Ripple’s coin had dropped to $2.2 at this point. It managed to bounce off to $2.6 in the following days but has been in a freefall state since the start of the current business week. Minutes ago, it slipped below $2 for the second time since yesterday evening.

As of now, it’s losing the battle for the third spot in terms of market cap to Tether, as its own has dumped to $114 billion – $24 billion shy of USDT’s.

Moreover, XRP is among the few larger-cap alts with double-digit price dumps on a daily scale. In fact, it’s the poorest performer from the top 15 alts, aside from Shiba Inu.

XRPUSD. Source: TradingView