XRP has again broken below the $0.49 threshold for the second time this month, hitting a 1-month low amid a generally bearish market and increased selling pressure.
XRP’s position has been bearish since it soared 5.21% on Oct. 3 on the heels of the latest verdict in the Ripple case. Recall that Judge Analisa Torres, on Oct. 3, denied the SEC’s motion to initiate an interlocutory appeal for the parts of the July 13 ruling that it lost.
Reacting to the development, XRP rallied to a high of $0.5478 on Oct. 3, its highest point in October. However, this rally was not sustainable, and XRP has retraced all the gains from that day.
Pro-XRP lawyer Bill Morgan called attention to this escalating bearishness on Oct. 9. At the time, XRP still held above $0.50, but the gradual collapse was observable. XRP has now relinquished two psychological support levels: $0.50 and $0.49.
Notably, since the 5.21% increase on Oct. 3, XRP has printed seven daily losing candles in eight days. The asset is down over 9.7% within this timeframe, plummeting to a one-month low of $0.4867 today. The last time it saw this price was on Sept. 14.
XRP is changing hands at $0.4898, down 1.45% over the past 24 hours. 24-hour trade volume has dropped by 29.28% over the past day to $703 million. This decline in volume demonstrates a drop in interest among traders.
Possible Reasons Behind XRP Decline
One of the primary reasons behind the recent descent is the general bearishness in the broader crypto market. Besides XRP, other prominent crypto assets have registered massive losses over the past week due to reduced market buying pressure.
The global crypto market cap hit a 2-month peak of $1.12 trillion on Oct. 2. However, since then, the market has lost $70 billion, standing at $1.05 trillion at the time of writing. This decline represents a 6.25% drop within a week.
Crypto assets such as Bitcoin (BTC) and Ethereum (ETH) have printed discouraging losses, dropping by 1.81% and 1.82% over the last 24 hours. These sustained declines have spilled into the rest of the market, affecting other assets, including XRP.
Another reason behind XRP’s drop is the Israel-Palestine situation, which has driven investors away from riskier assets like cryptocurrencies. Amid the escalating tension, market participants are considering the potential economic effects of the conflict should it explode further.
These concerns have caused investors to move away from risk assets such as cryptocurrencies in an attempt to hedge against any potential crash. This trend has led to selloffs within the crypto market, affecting XRP and other assets.
A third factor behind XRP’s drop is the massive whale movements transferring funds to exchanges. In the past 24 hours, whales have moved 61 million XRP to Bitstamp, according to Whale Alert. Ripple also moved 60 million XRP two days back, raising concerns of further selloffs.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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