Why is the Ripple (XRP) Price Down Today?
XRP has managed to become the 4th largest cryptocurrency by means of total market capitalization, surpassing the likes of SOL and BNB.
At one point, it even managed to outpace USDT and claim the third spot. It’s up by more than 45% in the past seven days, clearly being the best-performing altcoin from the top 10.
However, over the past few days, things have changed a bit, and XRP is now in a state of correction, down 5.3% in the past day alone.
As you can see in the chart above, XRP topped at around $2.9 the other day, and it has been declining since then, losing about 20% in the process. Interestingly enough, this happened when Donald Trump selected Paul Atkins as the new chairman of the United States Securities and Exchange Commission. In Trump’s own words:
“Paul is a proven leader for common sense regulations. He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World. […] He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”
So, if the next SEC Chair is relatively pro-crypto, why is the XRP price going down? Well, it’s important to look at things from perspective and understand that the cryptocurrency increased by almost 400% in less than 30 days at one point (before the recent correction). Nothing ever goes up in a straight line, and corrections are due.
Another reason besides the market getting overheated could be the precise fact that Trump announced his candidate for the SEC Chairman. Many traders may have bought up the cryptocurrency in anticipation of his choice, essentially turning the event into a “sell-the-news.”
On top of everything else, there’s also the fact that the entire market is seemingly going through a correction over the past 24 hours. Bitcoin, for once, dropped to as low as $92,000 in a flash crash before recovering to where it’s currently trading.
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