XRP has continued to feel the squeeze over the last few weeks as the altcoin struggles with growing price volatility in the market. Just the other week, a crypto rating council that features some of the major exchanges in the market and major institutional players in the crypto space noted that XRP was using “securities-like language” in its trading. This, the council said, meant that XRP was more or less classified as a security. The statement appeared to spook XRP investors and the altcoin community in general. XRP prices went on a spiral thereafter.
Although there was some recovery later, one pattern started to emerge. It looked as if XRP was caught up in a vicious wave of volatility. The descent can be traced back to the last week of September, when the main cryptocurrencies and altcoins all took a hit. It all started with Bitcoin. After the Bakkt hit and miss, Bitcoin plunged 12% dropping to $8,600. Altcoins weren’t spared either. XRP, in particular, was hit hard, losing 15% of its value in just 2 days.
Current trends in the market don’t look that favorable. Although XRP has had flashes of promise, the general trajectory looks downwards at the moment. Unless something drastic happens, the altcoin could be headed towards one of the worse performances in recent months.
Despite this, there are still a few positive signs. However, one thing to keep in mind is that most major cryptos including Bitcoin and other altcoins are stuck in the same spiral. It has nothing to do with XRP in particular. Even though the altcoin has had its challenges, it seems the current descent has been occasioned largely by headwinds on the market. As a result, a majority of altcoins have been affected.
We have also seen some signs that XRP has the potential to really rally. On 18th September, the altcoin actually rose 24% in just a day. Although the price plunged a few days later after the market correction, many analysts saw this as a potential good sign that things may just start to look up. But even with that, there is still some cause for concern, especially when you factor in volatility. Despite showing signs of steady growth in some cases, XRP has also come through the brunt of market headwinds in a worse way compared to main cryptos and altcoins.
Following the September 23rd sell off, XRP prices plunged significantly. It took nearly 7 days for the prices to recover. Nonetheless, this kind of volatility is not uncommon in the crypto market. Bitcoin itself has been notoriously volatile over the last few years and there is no reason why we shouldn’t expect the same from altcoins like XRP as well. The main goal right now for XRP would be to stem the bleeding.
It’s been almost a year since XRP fell to one of its lowest prices of $0.233. As long as the altcoin can hover over and above that price, then there is every chance that growth will be seen in the near future. But it’s still hard to ignore the bearish spree that XRP has been on over the last few weeks or so. Even though it can be argued that the entire crypto market has somewhat been bearish in nature, many XRP fans are hoping that the fortunes will start to turn soon.
The only good news right now is that this is not the first time the altcoin has felt the squeeze in the market. In previous occasions where all seemed lost, XRP has always managed to roar back stronger. There is no reason to believe that it won’t do the same again.