A shock for Ripple investors. The XRP/USD exchange rate has fallen sharply. The altcoin’s price fell by more than 50 percent during the last week. This means that the value of one of the most valuable altcoins has decreased from around $0.45 to $0.2 in just one day. Why is Ripple dropping? The XRP/USD exchange rate fell a few days earlier. A few weeks ago, the altcoin was trading at around $0.66. In contrast, the price has even more than halved.
In November, XRP/USD exchange rate had experienced a real price explosion. Due to an announcement of the Spark Token Airdrop for XRP holders, the price shot up 200 percent from around $0.25 to $0.75 within a few days. But now it looks like XRP/USD rate could fall back to this old level or possibly decrease even more. Why is Ripple dropping today? Today, we’ll try to find out!
Why Is Ripple Volume Dropping: XRP/USD Exchange Rate Development
Why is Ripple volume dropping? Let’s consider the most important facts about the price development of XRP/USD in the past trading week.
- The exchange rate maximum of XRP/USD was reached on December 21st — $0.516944.
- The exchange rate minimum of XRP/USD was reached on December 23th — $0.258602.
- The current value of 1 XRP is $0.218217.
So, why is Ripple volume dropping? During the sale, XRP’s market cap also collapsed. Within the last week, it has decreased by around 11 billion dollars and now stands at a 10 billion dollar mark. That is, in the crypto ranking by market capitalization, XRP has lost its place and has fallen to 4th place behind the Tether stablecoin. Compared to its all-time high of $3.4, which was reached on January 7, 2018, the price is now about 1,000 percent away.
Why Is Ripple Dropping Today: SEC Charges Ripple
Why is Ripple dropping today? Well, XRP crashed for a serious reason. The US Securities and Exchange Commission announced that they had brought charges against Ripple. The authority accuses the company of allegedly selling unregistered securities in the form of XRP tokens. Ripple is said to have achieved revenues of $1.3 billion. In addition to Ripple, the SEC has also brought charges against two corporate executives.
Furthermore, the former Ripple managing director Christian Larsen and the current CEO, Bradley Garlinghouse, are accused of having unregistered XRP sales with a volume of around $600 million. In their first statements, Garlinghouse and Larsen announced that they would defend themselves against the lawsuit, which they consider to be unfounded.
Why is Ripple dropping in price? The further course of the proceedings is likely to have a massive impact on Ripple’s price development. In the worst case, investors could face a total loss and delisting on crypto exchanges. However, if Ripple can refute the charges, a strong price recovery of XRP can be expected. However, it will be a long time before a judgment is final. Until then, investors will probably stay in the dark about how things will go with XRP. Caution is advised here.
Why Is Ripple Dropping in Price: Coinbase Will Suspend Trading in XRP
One of the largest cryptocurrency trading platforms Coinbase will suspend trading in XRP. The main reason for this is the initiation of legal proceedings by the US Securities and Exchange Commission against Ripple.
Why is Ripple dropping in price? Following the announcement by Coinbase, the price of XRP immediately fell more than 10 percent. Since the SEC’s announcement of the proceedings, the price has decreased by 44 percent.
Ripple’s XRP — currently the fourth largest cryptocurrency according to CoinMarketCap — is fighting for its life. Traders and analysts call into question the future of the token, as a number of cryptocurrency exchanges are still removing XRP from their platforms.
Why is Ripple dropping? What do you guys think? Are there any other reasons? Feel free to share your thoughts in the comments!