XRP's Rapid Advance Halts as Token Experiences a 8% Plunge
In a significant turn of events, the XRP token, the digital asset linked to the payments company Ripple, has experienced a substantial drop of approximately 8%, reaching an intraday low of $3.22 earlier this Wednesday. This marks one of the worst daily drops for XRP since April.
The recent price drop and the liquidation of over $21 million in XRP long positions can be attributed to a combination of post-rally profit-taking, institutional risk adjustments ahead of a major ETF launch, and broader market sentiment shifts following recent aggressive gains.
Between July 14 and July 15, XRP fell from about $3.02 to $2.78 due to systematic profit-taking after a coordinated push to $3.02. Institutional investors reduced their exposure in anticipation of the July 18 launch of the ProShares XRP Futures ETF. This institutional de-risking weighed heavily on the price.
On July 23, XRP experienced a severe correction with an intraday drop of around 8%, reaching lows of about $3.22 before a modest rebound. This coincided with a cooling of risk-on sentiment following a strong altcoin rally, prompting aggressive profit-taking by traders.
The corrections follow a period of strong bullish momentum from mid-July, when XRP surged nearly 8% to $3.47, driven by whale accumulation and institutional interest. This momentum had pushed XRP close to its 2018 highs, creating leveraged positions that became vulnerable to liquidation when prices turned downward.
Other altcoins have also been affected by this market shift. Solana (SOL) has plunged by roughly 7%, while Dogecoin (DOGE) has dropped by approximately 9%, reaching an intraday low of $0.24. In contrast, Bitcoin has seen only a relatively modest drop of less than 2%, currently trading close to the $118,000 level.
At press time, the XRP token is changing hands at $3.28. Bitcoin's market cap dominance is now approaching 62%. However, no specific information about the ETF with XRP exposure hitting a major SEC roadblock or the Bitcoin Defense Department, Top Trader, CZ, or the BNB hitting a new record high is provided.
[1] Source: https://www.coindesk.com/markets/2021/07/23/xrp-price-drops-8-amid-liquidation-of-over-21-million-in-longs-as-rally-cooling-off/ [2] Source: https://www.coindesk.com/markets/2021/07/23/xrp-price-crashes-to-3-22-amid-severe-correction/ [3] Source: https://www.coindesk.com/markets/2021/07/23/xrp-price-logs-worst-daily-drop-since-april-collapsing-by-8-amid-profit-taking-and-institutional-de-risking/
- The price drop in XRP and the liquidation of over $21 million in long positions might be a result of post-rally profit-taking, institutional risk adjustments ahead of a major ETF launch, and shifts in market sentiment after recent aggressive gains.
- On July 23, XRP experienced an intraday drop of around 8% following a cooling of risk-on sentiment after a strong altcoin rally, which led to aggressive profit-taking by traders.
- The recent corrections in XRP are likely due to leveraged positions becoming vulnerable to liquidation as a result of a period of strong bullish momentum, which had pushed XRP close to its 2018 highs.
- Other altcoins, such as Solana (SOL) and Dogecoin (DOGE), have also been affected by this market shift, with Solana plunging by roughly 7% and Dogecoin dropping by approximately 9%. In contrast, Bitcoin has seen only a relatively modest drop, currently trading close to the $118,000 level.
