Ripple has plummeted Monday, with XRP falling a remarkable 34% in August as a market downturn puts any rebound in doubt. Indeed, the token has dropped notably in value after during throughout July and looking to make a sustained rally over the next several months.
Many traders expected big things from XRP in August. Not only had it performed well the last several weeks, but the end of its years-long US Securities and Exchange Commission (SEC) lawsuit was nearing. Now, it looks to be on the decline as the asset has officially fallen below the $0.50 level.
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Ripple Suffers Big From Crypto Market Crash: Can XRP Recover?
After months of being stuck at the $0.5 mark, things started to turn around for Ripple (XRP). The crypto reached a high of $0.657, and was looking to surge over the next week. That seemingly changed, as Ripple fell more than 34% since August started, with the market lessening chances for XRP to rebound anytime soon.
The crypto market crash led the asset to lose more than 18% in the last seven days, according to CoinMarketCap. The token has dropped to $0.491, but is still in the green over the last 30 days, up 15%. There are plenty of obstacles set to derail a potential rebound, however.
The crash was significant, with Bitcoin falling to $54,565 on Monday. The leading crypto dropped more than 5.7% in the last 24 hours, and was one of the hardest hit. Ripple has long been tied to Bitcoin, with the former’s performance closely tied to the asset.
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If Bitcoin continues to decline, XRP could be in trouble. If BTC falls to the $50,000 level, XRP could be set to face support between $0.38 and $0.42. What makes things even more concerning is Ripple’s unlocking of more than a billion XRP tokens.
The unlock takes place every month and is set to create immense selling pressure. Over the last 24 hours alone, Ripple’s trading volume has surged a remarkable 250%. The biggest question now is how bad can things get before they get better.
That is a question only time can answer. Geopolitical uncertainty and continually high interest rates have led to declines across the stock market. If that persists, Bitcoin isn’t likely to turn around. Therefore, XRP could be looking at a sustained downturn before it can turn around.