visimoney
TLDR: XRP’s price has been dropping, losing 16% in just 24 days. This drop is due to the overall decline in the crypto market, particularly Bitcoin, and the major sell-off that occurred. The approval of spot Bitcoin ETFs and talks of a potential spot XRP ETF also impacted XRP’s price. Whales selling off their XRP holdings and a decline in market sentiment and development activity on the XRP Ledger have also contributed to the drop in price.
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XRP is facing significant challenges as its price has dropped below key levels since the start of the year. It has lost 16% in just 24 days, the worst decline since August 2023 when it dropped by 26.75%. The main reason for XRP’s drop is the overall decline in the cryptocurrency market, especially Bitcoin, which experienced a major sell-off causing all cryptocurrencies to lose value.
Bitcoin’s price initially increased, lifting other coins like XRP, before falling due to big Bitcoin owners and long-term holders selling off their assets. The Grayscale Bitcoin Trust (GBTC) also added to the selling pressure as big investors sold their GBTC shares to switch to other investments, causing Bitcoin prices to decline by 8.05% in the last week. Since XRP and other cryptocurrencies often follow Bitcoin’s direction, their prices also dropped.
There is speculation about the potential for a spot XRP ETF after the approval of spot Bitcoin ETFs and ongoing talks about crypto exchange-traded funds. Supporters of a spot XRP ETF highlight XRP’s clear legal standing. Despite the demand for such a product, no asset manager has taken the initiative to file for it yet.
The recent drop in XRP’s price is also attributed to large cryptocurrency holders, known as whales, selling off their holdings. Notably, 29.1 million XRP was transferred to Bitstamp by Ripple, and data from Santiment shows a rise in addresses holding 10-100 million XRP while those with 100 million to 10 billion XRP have decreased. This widespread selling by major holders is shaping the current cryptocurrency market dynamics.
Other factors contributing to the decline in XRP’s price include market sentiment and development activity on the XRP Ledger (XRPL). Higher development activity and more developers typically influence a bullish market sentiment. Currently, XRP has 45 full-time developers, ranking 49th among mainstream blockchains.
