Ripple plunges on Friday, XRP dips to lowest level in over a year amidst market wide correction
- Bitcoin price drop under support at $55,000 ushered a market-wide correction in top altcoins, including XRP.
- Ripple erased all gains from the past fifteen months and hit $0.40 early on Friday.
- XRP extended losses by 7%, down to $0.38 on Friday.
Ripple (XRP) piled losses alongside top altcoins and Bitcoin early on Friday. The German government’s Bitcoin transfers and Mt.Gox payback to creditors have created uncertainty among traders and increased the pressure on Bitcoin and altcoins like XRP.
The latest developments in the Securities and Exchange Commission (SEC) vs. Ripple lawsuit are skewed in favor of the payment remittance firm, with Judge Amy Berman Jackson treating Judge Torres’ 2023 ruling as precedent in the SEC vs. Binance suit.
Daily Digest Market Movers: Ripple hit by steep correction amidst crypto bloodbath
- Ripple erased its gains from the past fifteen months, falling to a fresh 2024 low of $0.38, early on Friday.
- XRP trades at $0.39, at the time of writing, wiping out nearly 7% of its value on Friday.
- The developments in the SEC vs. Ripple lawsuit support Judge Torres’ ruling that XRP is not a security in secondary market sales.
- Judge Torres’ 2023 ruling, which offered a partial victory to Ripple in the longstanding legal battle with the regulator, was strengthened by Judge Amy Berman Jackson using it as precedent in the SEC lawsuit against Binance.
- Ripple traders have been shedding their holdings at a loss since April 2024, per Santiment data.
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XRP NPL and Supply on exchanges
Technical analysis: XRP dips to lowest level in fifteen months
Ripple is in a downward trend since March 11. The altcoin dipped to its lowest level in fifteen months, at $0.38, early on Friday. The altcoin erased gains from earlier in 2024 amidst a marketwide correction in cryptocurrencies.
Ripple could find support at the March 21, 2023, low of $0.37 if it extends losses further. XRP is down 7% on Friday.
XRP/USDT daily chart
On the contrary, a daily candlestick close above $0.4611 could invalidate the bearish thesis and push XRP higher toward the next psychologically important resistance at $0.50.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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