Analysis of the Key Reasons Behind XRP Sell-off

As the fourth largest cryptocurrency by market capitalization, XRP plummeted nearly 12% in the past day, consistent with declines in other major altcoins.

As of the time of writing, XRP has fallen 10.24% in the last 24 hours to $2.19, underperforming compared to the top 10 cryptocurrencies by market capitalization. Apart from TRON, which also saw a decline of over 10%, XRP recorded the largest drop among the top 10 in daily trading.

The sharp drop in XRP prices is likely caused by profit-taking, with the sell-off mainly dominated by platforms in South Korea.

The XRPCVD (XRP Cumulative Volume Delta) of the quoted asset indicates that the XRP sell-off began to accelerate around 7:45 PM UTC on December 9, earlier than other markets. This early trend suggests that traders on South Korean exchanges reacted first, possibly due to local market conditions or sentiment.

This can be explained by the fact that South Korean cryptocurrency exchanges account for about 11% of the total trading volume of BTC, ETH, XRP, and DOGE.

Since the peak of $2.64 on Sunday, XRP's price trend has been in continued decline, further escalating on Monday to a low of $1.95.

In the candlestick chart attached to its tweet, Kaiko analyzed the XRP price sell-off caused by XRP CVD; in this context, CVD refers to the increasing trading volume, measuring net buying and selling activity. A negative CVD indicates net selling.

From the candlestick chart, it can be seen that the CVD of the XRP/KRW currency pair fell more rapidly than that of other XRP-based currency pairs (such as XRP/EUR, XRP/FDUSD, XRP/USD, and XRP/USDT).

The XRPCVD of XRPKRW sharply accelerated to a negative value at 7:45 PM UTC on December 9, and by 10:30 AM UTC on December 10 (according to the candlestick chart), it had stabilized at a negative value of $150 million.

The early sell-off from South Korean platforms had a blockchain reaction on the global market. As traders on these platforms began to sell their holdings of XRP, the price fell, and other exchanges followed suit.

XRP has since rebounded to around $2.15 after hitting a low of $2.04 in today’s trading.