In a week when geopolitical uncertainties increased and the downward trend in the altcoin world revived, XRP, like its peers, experienced a significant decline. The altcoin has witnessed a significant decline in its market cap, losing around $2.5 billion in value in the last seven days. Simultaneously, its price was hit with a drop of nearly 9%. Here are the details…
Why did altcoin XRP fall?
Ripple has been arguing for a long time that it does not interfere with the performance of the XRP price in the market. However, the company’s decision not to sell a significant portion of its monthly XRP allocation in the escrow account began to raise questions. A critic named Alter Diego expressed concern about the mainly escrow selling of XRP on X. He argued that despite receiving regulatory approval, Ripple sold the least amount of tokens, which could mean the company was indirectly supporting the price of XRP. Seven days ago, XRP had a market cap of $28.19 billion. However, the altcoin has fallen to $25.78 billion at the time of this report. In this process, Ripple’s escrow wallet was also unlocked.
The fact Ripple decides not to sell most of the XRP released each month from escrow tells me what I already know from the SEC’s evidence in the Ripple case. Ripple takes steps to support XRP’s price. https://t.co/QOTUZXnBhY
— bill morgan (@Belisarius2020) October 9, 2023
This represents a staggering loss of $2.41 billion, or about 8.55%, in market value in a matter of days, according to the latest data from cryptocurrency tracking platform CoinMarketCap on Oct. 11. XRP’s price performance reflects market cap woes. Over the last 24 hours, the value of the XRP token has decreased by 3.06%. Additionally, the altcoin saw a decline of 8.96% compared to the previous week and a decline of 0.53% on its monthly chart. Currently, XRP is trading at $0.48 according to the latest data. Several factors contributed to this downward trend. In particular, one of the potential catalysts for the price decline could be localized selling pressures resulting from Ripple’s recent move of 60 million XRP on October 9, as we mentioned above. These tokens are being withdrawn from the 200 million held as part of this month’s one billion XRP token lock.
There are also positive developments
On a more positive note, Mexico’s central bank, Banco de México, has expressed interest in using Ripple’s liquidity solution xRapid as a key bridge between the US dollar (USD) and the Mexican peso (MXN). This strategic move has the potential to rejuvenate the altcoin price in the future. Additionally, XRP has tended to respond positively to any positive developments in the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC).
One recent example of this was when Judge Analisa Torres denied the regulator’s request for a temporary appeal, confirming that Ripple’s sale of XRP did not violate securities laws. As altcoin XRP navigates this challenging market environment, we will see how these dynamics will continue to shape its performance and role within the broader cryptocurrency ecosystem. Investors and enthusiasts are carefully watching developments in the coming days, seeking clarity amid ongoing volatility in crypto markets.
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