Here is Why the Price of XRP Nosedived Today

XRP is buckling under the weight of intense selloffs as its weekly growth moment got derailed.

Per data from CoinMarketCap, XRP price is down by 2.3% in the past 24 hours to $0.5019, a trend that emanated following the exploit of an address belonging to Chris Larsen, Ripple’s Executive Chairman. 

The exploit has triggered a major scare within the XRP community as initial reports posited that the hack compromised Ripple’s wallet. With the bearish sentiment that engulfed the market, the trading volume dropped 42.17% to $1,118,204,215.

Allaying the XRP Hack Fears

Immediately the hack was spotted by the renowned blockchain sleuth ZachXBT, Chris Larsen took to X to correct some claims regarding the breach. He specifically stated that the compromised wallet was his personal XRP account, not that of Ripple.

He confirmed that immediate action was taken to detect the error and trading platforms were notified to freeze the exploiter’s addresses. The hack reportedly led to the loss of approximately 213 million XRP worth about $112.5 million at the time.

Despite the clarifications made, traders chose to err on the side of caution as some looked to offload their XRP bags. Based on the latest selloffs, XRP dropped to a weekly low of $0.4907 and the ordeal led the coin to veer off its 3-year-long consolidation path.

Will XRP Bounce Back?

Based on the general dynamics in financial markets, XRP is poised to bounce back from its current selloff level.

Historically, XRP is one of the most battered digital currencies and it failed to join the last bull cycle owing to the unresolved securities lawsuit between Ripple Labs and the United States SEC.

Having passed through the SEC crackdown and still among the most capitalized cryptocurrencies, XRP is poised to bounce back from its current lows in the near future, according to multiple analysts.