February 24, 2024

XRP price dropped sharply in the last few days as traders began shortening the tokens. Its value has declined from $0.60 to $0.5, confirming pressure from the sellers. XRP trades at $0.51 as the sellers continue to dominate the market.

It has lost around 16% of its gains this month due to various factors.

What Factors Support XRP’s Downtrend?

The leading factor is the general drop in prices of crypto assets due to Bitcoin’s decline. Also, selling pressure reduced the global crypto market cap by over $130 billion this week. 

Notably, the approval of Spot ETF products led to a temporary rally that saw a massive inflow from investors. However, the initial excitement faded, leading to a sharp decline in price.

BTC selloff from whales hoping to cash in on the ETF rally caused this downtrend. 

The absence of a spot XRP ETF is another issue likely leading to this decline. Rumors on an XRP ETF spread widely close to the Bitcoin ETF approval decision.

This was because some experts believe that XRP has legal backing to apply for an ETF after proving that it is not a security. These rumors began in November 2023, when a fake BlackRock iShare XRP ETF filing appeared. 

However, it was labeled as false since no official filing regarding such ETFs has been made to date. Consequently, the delay in applying for an XRP ETF might have contributed to a drop in investor interest, leading to a slump in XRP’s value. 

XRP Whales Selloff, Developments, and Market Sentiments Also Aiding Price Slump

Four Factors Likely Contributing to XRP Price Decline

XRP whales dumping the asset contributed to the decline. These whales sold off their assets, causing price volatility for XRP. 

One of the most significant selloff events for XRP in 2024 occurred on January 22 after a whale transferred 29.1 million XRP to the Bitstamp exchange. Often, traders transfer assets to exchanges to sell them. So, this action was likely a short trade from the whale.

Also, Santiment data revealed that balances of wallet addresses holding between 10 million and 100 million XRP declined. Furthermore, the current market sentiment and underdevelopment of the XRP ledger also influence XRP’s price action.

According to lawyer Bill Morgan, the XRP ledger issue should not be ignored anymore. 

As such, Morgan urged the XRP community to stop blaming XRP’s price dip on their legal issues over the years. Based on that, another X user, Anders, suggested that the best thing to attract developers to the XRPL is boosting its capacity to build different applications. 

Also, Anders stated that proposals such as an Automated Market Maker (AMM) are vital to XRP’s progress. Overall, these factors contribute to the current price decline of XRP.


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