Ripple’s XRP token is on the verge of falling below the $2 mark. XRP last traded below $2 in early April of this year. The asset is down 2.6% in the daily charts, 7% in the weekly charts, 9.8% in the 14-day charts, and 13.4% over the previous month. XRP has still maintained some healthy gains over the last year, rallying 313.8% since June 2024.
Cryptocurrencies Slump Amid High Volatility
Along with XRP, the larger cryptocurrency market has also experienced a sharp dip over the last few days. The global crypto market cap has dipped 2.8% in the last 24 hours to $3.23 trillion. According to CoinGlass data, $651.21 million worth of assets were liquidated in the last 24 hours. Bitcoin (BTC) has fallen to the $101,000 level.
XRP and the larger market dip are likely due to increased volatility arising from global geopolitical tensions. The US hit three Iranian nuclear sites, marking a significant escalation in the ongoing Iran-Israel conflict. Many fear a prolonged military effort in the Middle East.
The market dip may have been further propelled by the Federal Reserve keeping interest rates unchanged. A rate cut may have boosted investor confidence and inflows into risky assets.
What To Know Before Buying The XRP Dip?
There is a high probability that Ripple’s XRP token will recover once sentiment improves. The SEC has dropped its litigations against the fintech company, and its path seems more or less clear for growth.
There is also a high chance that the SEC will approve a spot XRP ETF sometime this year. An ETF could lead to a massive surge in institutional inflows into the asset. Such a scenario could lead to XRP hitting new highs.
Also Read: Ripple’s XRP Is 1 Candle Away From Its “Kaboom Phase” Analyst Predicts
Ripple has also seen incredible adoption in the global financial ecosystem. XRP could greatly benefit from the growing adoption rate of the blockchain.