XRP price crash Understanding the reasons behind the sudden decline
XRP continues to face challenges as it trades in the red zone, experiencing further losses. The token’s inability to rally and below the $1 mark can be attributed to ongoing speculation and the Ripple and Securities Exchange (SEC) case. XRP’s downturn is also influenced by overall market sentiment, impacting like Bitcoin (BTC), with bears maintaining control.
Currently, XRP finds support in $0.45 to $0.46 range, offering hope for a potential rally towards crucial $0.50 mark. However, in the short term, XRP has a significant decline.
To understand why XRP is crashing, insights from on-chain data are valuable. Crypto analysis platform Santiment shared on June 25 that sheds light on what is happening with XRP. Investors have realizing losses on their token holdings over the past ten days as XRP lost its $0.50 level—a typical market capitulation behavior where traders sell tokens at a loss while anticipating a further decline in price.
Santiment’s data indicates negative spikes in XRP Network Realized Profit/Loss (NPL) during this ten-day timeframe, with losses $30 million. Additionally, there has been a decrease in XRP supply on exchanges during this period, contributing to bearish sentiments.
Investors also express concerns planned token unlocks that may lead to further downside pressure on the price of XRP. In July 2024 alone, 1 billion tokens worth $470 million will be unlocked as part of Ripple’s monthly sell-offs.
Furthermore, regulatory developments have coincided with XRP’s correction phase following SEC Chair Gary Gensler’s allegations that cryptocurrencies have harmed the public—a statement criticized by Ripple CEO Brad Garlinghouse.
Currently trading at around $0.46 with daily losses of nearly 0.5% weekly losses exceeding 6%, breaching the resistance zone at $0.50 becomes for inspiring investor confidence and determining the future trajectory of XRP.
