As volatility persists in the cryptocurrency market, XRP, which showcased a robust rally over the last four weeks, has experienced a sharp decline. The price of XRP has fallen by 10%, dropping to $2.26. This decline has caused XRP's market capitalization to fall below that of Tether. Meanwhile, mainstream cryptocurrencies like Bitcoin and Ethereum have risen, with Ethereum gaining 5% and Bitcoin increasing by 7%.
Shift from Altcoins to Bitcoin and Ethereum
Pav Hundal, Chief Market Analyst at Swyftx, explained that this movement is related to investor cycles. Hundal stated, "Investors are moving from altcoins to major cryptocurrencies like Bitcoin and Ethereum. The expectation of Bitcoin's rally continuing supports this trend." He also noted that the drop in XRP is part of the overall market cycle.
Crypto analyst Dark Defender characterized this decline as anticipated. "XRP's price may continue to show sideways movements for a while. However, we expect the price to reach levels of $2.92 and $3.99 in the long run," he stated. These comments indicate that investors need to remain vigilant.
SEC Developments Bring Hope for XRP
Changes at the SEC have created a positive atmosphere within the XRP community. Former U.S. President Donald Trump's nomination of Paul Atkins for SEC Chair has been welcomed by XRP holders. XRP supporters have described Atkins as "crypto-friendly" and a "logical candidate." Analyst James Murphy emphasized the potential positive impact of this development on XRP's price.
Additionally, Ki Young Ju, CEO of CryptoQuant, anticipates significant changes in the altcoin season. "Bitcoin has created its own league. The BTC-altcoin correlation is a thing of the past," he said. Ju pointed out that altcoins need to develop innovative solutions.
Finally, the introduction of the RLUSD stablecoin on XRPL and Ethereum, along with four U.S. Spot XRP ETF applications, draws attention. The appointment of a new SEC chair could shape the future of XRP and other altcoins. However, it is essential for investors to closely monitor market movements and make strategic decisions.
