XRP’s price has taken a dive, falling below $3 again. This is disappointing for XRP holders, especially considering recent positive news.
What Happened to XRP?
Despite a new XRP ETF launching and Ripple strengthening its ties with a major Spanish bank, XRP hasn’t been able to maintain its upward momentum. It’s currently trading around $2.90, down over 4% in the last 24 hours, with a market cap of roughly $173 billion.
Beyond the SEC Lawsuit
Analysts believe the SEC lawsuit is no longer the main reason for XRP’s poor performance. Now, the focus is on broader market factors.
Profit-Taking and Liquidations
The new ETF saw a huge $37 million in trading volume on its first day, but this led to a lot of profit-taking. Many investors sold their XRP, creating significant selling pressure. To make things worse, XRP traders experienced nearly $79 million in liquidations in a single day, mostly from long positions. This forced selling further decreased the price and shook investor confidence. The broader crypto market also dropped 4%, impacting XRP even more.
What’s Next for XRP?
XRP is struggling to stay above $2.80. If it breaks below this level, it could fall to the $2.50-$2.60 range. However, if it can regain the $3.10-$3.20 range, it might have a chance to recover.
The outlook is uncertain. Some analysts are optimistic, predicting a potential surge in price, even suggesting a price of $300 by 2026. Others are more cautious, citing ongoing selling pressure and stricter regulations for altcoin ETFs. The coming days will be crucial for XRP, determining whether it can hold its current value or face further losses.