By Finbold | Created at 2024-12-19 15:53:17 | Updated at 2024-12-19 18:42:31
3 hours ago
Though most discussed in the context of the staggering post-election rally, XRP’s most recent trend has been one of stagnation, and the latest even turned into a substantial price drop.
Specifically, even though the token is up a staggering 115.99% in the last 30 days, it is 3.42% in the red in the last 7 days and 5.53% in the last 24 hours to XRP price today of $2.35.
XRP 30-day price chart. Source: FinboldSuch a downturn likewise ensured that the cryptocurrency saw its market capitalization collapse by approximately $7 billion from $142.13 billion on the evening of December 18 to $135.5 billion at press time on December 19.
XRP 7-day market capitalization price chart. Source: CoinMarketCapWhat’s behind XRP’s $7 billion plunge?
Though such a plunge might be concerning for cryptocurrency traders, given the stagnant performance prevalent since early December, it is noteworthy that the bloodbath has little to do with XRP itself.
Indeed, on the evening of December 18, there was a far-reaching downturn that ensured the Wednesday stock market session wiped $1.5 trillion, that the wider cryptocurrency market capitalization fell by a total of $300 billion, and that even gold – traditionally a safe-haven asset – collapsed more than 1%.
Such a calamity was triggered by the Fed’s announcement that, despite reducing interest rates by the expected 25 basis points (BPS), inflation is expected to be higher in 2025 at 2.5% instead of the previously forecasted 2.1%, and that there will be fewer cuts in the coming 12 months.
What’s next for XRP?
Still, as evidenced by XRP’s own performance – and the performance of multiple other assets – it remains unclear if the sharp collapse will have a lasting impact.
At its lowest, the token market capitalization fell to about $125 billion – some $17 billion from where it stood on the eve of Chair Jerome Powell’s speech.
Furthermore, whale activity recorded by December 17 highlights that the token’s current struggles are more likely to constitute an accumulation phase than a prelude to a deeper plunge.
On the flip side, the fact that XRP began its fall hours before the FOMC press conference started – from December 18 highs at $147 and last seven days’ highs at $155 billion – indicates persistent uncertainty about the token’s next move.
Featured image via Shutterstock
