XRP is experiencing a significant downturn, plunging 8% in value on Monday. As the seventh-largest cryptocurrency by market capitalization, its price dropped sharply from $0.42 to $0.37 within hours. This crash erased nearly $800 million** in market value, pushing XRP below the **$20 billion threshold. Currently, its market cap rests at $19.1 billion**, with potential to decline further to **$18 billion. The token continues to bleed across trading indices, raising concerns of a double-digit drop in the coming hours.
Why Is XRP Crashing Today?
1. Profit Booking After Recent Gains
XRP was one of the few cryptocurrencies that maintained positive momentum over the past 14 trading days, gaining 12% despite the broader market turmoil caused by the FTX collapse. The rally was fueled by optimism surrounding Ripple's ongoing lawsuit with the SEC, as signs pointed toward a favorable resolution.
However, with the news cycle slowing, investors are now cashing in profits. Short-term traders who entered positions earlier this month are offloading their holdings, creating sustained selling pressure.
2. Repeated Rejection at $0.50 Resistance
XRP has struggled to break past the $0.50** resistance level for the past six months. Although it briefly touched **$0.51 in October, immediate corrections followed. Today’s drop diminishes near-term hopes of a climb toward this critical price point.
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3. Broader Market Sentiment
The crypto market remains fragile, with Bitcoin and Ethereum also facing downward pressure. XRP’s decline aligns with this trend, as investors exhibit caution amid macroeconomic uncertainties.
Can XRP Recover? Key Levels to Watch
- Support at $0.35**: If XRP stabilizes here, a rebound toward **$0.40–$0.42 is possible.
- Break below $0.35: Failure to hold this level may trigger further declines, pushing XRP to new weekly lows.
At press time, XRP trades at $0.37**, down **7.1%** over 24 hours. It remains **88.8%** below its all-time high of **$3.40 (January 2018).
FAQs: XRP Price Crash Explained
Q1: Why did XRP drop suddenly?
A: The drop stems from profit-taking by short-term traders after recent gains, combined with broader market weakness.
Q2: Will XRP recover soon?
A: Recovery depends on holding $0.35 support. A bounce could follow, but prolonged selling pressure may extend losses.
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Q3: How does the SEC lawsuit affect XRP’s price?
A: Positive developments previously boosted prices, but the current dip reflects temporary sentiment shifts rather than legal setbacks.
Q4: Is now a good time to buy XRP?
A: Traders might consider waiting for price stabilization near support levels before entering new positions.
Keywords: XRP crash, Ripple price drop, cryptocurrency market, SEC lawsuit, profit-taking, support levels, crypto resistance
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