As the US and Iran war cries escalate with threats of blocking the Strait of Hormuz, here are the key facts that are revolving around Ripple’s native token XRP on Monday. The leading altcoin had dropped nearly 9% in the day’s trade falling to a low of $1.95. It managed to briefly recover and moved to the $2.04 mark as the day progressed. It settled at the $2 at press time.
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In addition, $32.07 million worth of XRP tokens were liquidated on Monday and most of them came from long positions. Over $31.10 million worth of XRP was liquated from long positions making it the majority of all the sell-offs. Also, an increase in ‘short’ trading spiked 3,222% for XRP which tipped the balance of the altcoin to the red, according to data from TradingView.
XRP On a Slippery Slope as Investor Confidence Dips
Ripple’s XRP fell below $2 on Monday trading and is not at the crosshairs of a decline. Its price is now hovering around the $2 mark and stands at risk of dipping to $1.90. The conflict in Iran and the threat to block the Strait of Hormuz turned the broader Asian markets red today. India’s Sensex dipped more than 500 points while Japan’s Nikkei dropped 50 points. In addition, Singapore’s Strait Times index went low by 0.11% and the Philippines PSEI index fell 125 points.
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The US stock market faces grim a prospect as the tensions in the Middle East is escalating. Crude oil prices, which were at $70 a week ago have shot up to $75 and are attracting bullish sentiments. Bitcoin also dipped to the $101,000 range and remains on a slippery slope. All these developments have also affected XRP making its price turn bearish as investors’ confidence is low. If it dips below the $1.90 range, a quick recovery will seem much harder than previously thought.