- Ripple’s XRP has become the worst-performing cryptocurrency in the top 20, plunging nearly 15% in a week despite the positive outcome of Ripple’s lawsuit against the SEC.
- The decline is attributed to a market-wide correction, a “sell-the-news” reaction, and large-scale sell-offs by XRP whales.
Ripple’s XRP, once celebrated for its resilience, has taken a nosedive, shedding nearly 15% of its value in just a week. Despite positive legal developments and Ripple’s victory against the US SEC, XRP’s price momentum has not only faded but worsened, making it the worst-performing asset among the top 20 cryptocurrencies.
The “Sell-the-News” Phenomenon
On March 19, Ripple CEO Brad Garlinghouse announced the long-awaited end of the lawsuit between Ripple and the SEC. The XRP community rejoiced as prices spiked to $2.6. However, the excitement was short-lived, and the market reacted in a classic “sell-the-news” fashion. Prices quickly plummeted, and XRP failed to sustain any gains from the positive news.
Even the official confirmation of the lawsuit’s closure last week did little to lift XRP. Instead, it continued its downward spiral, now trading below $2.1—a 20% drop from its March 19 peak. This decline could accelerate if prices dip below the critical $2 mark, signaling further trouble ahead.
Market-Wide Correction Amplifies XRP’s Troubles
The cryptocurrency market as a whole has been experiencing a downturn. Bitcoin (BTC) fell to $82,000, Ethereum (ETH) to $1,800, and Solana (SOL) to $125. While BTC, SOL, and ETH suffered losses of 5.5%, 9%, and 11.6%, respectively, XRP’s 14.5% plunge was the steepest.
This stark contrast suggests that XRP’s woes are not solely tied to market sentiment but stem from unique challenges facing the asset.
Whales Dumping XRP: A Major Contributor
The actions of large XRP holders, commonly referred to as “whales,” have also exacerbated the situation. Following the US elections and XRP’s surge from $0.6 to $3.4, whales aggressively accumulated the token. However, recent events indicate a drastic shift in their strategy—massive sell-offs.
In just two days, 1.12 billion XRP, valued at over $2.3 billion, was sold, representing nearly 2% of the token’s total market cap. This significant sell-off has further pressured XRP’s price, raising concerns about even steeper declines.
XRP’s current position remains precarious. While Ripple’s legal victory brought relief, it failed to translate into lasting price gains. Coupled with a bearish market sentiment and whale-driven sell-offs, XRP faces a tough road ahead.
Unless bullish catalysts emerge or the broader market recovers, XRP may continue to struggle, leaving investors questioning its long-term prospects.