XRP price suddenly drops by 10%, causing chaos in the cryptocurrency market as investors and enthusiasts seek answers. In this article, we will delve into the possible reasons behind this unexpected decline and explore the future of $XRP .
Profit-taking triggers selling pressure
One of the main reasons behind the drop is a surge in supply, leading to selling pressure. Currently, nearly 97% of XRP holders are in profit, so it is not surprising that many are cashing out. This profit-taking has led to downward price pressure, resulting in a 10% drop.
Uncertainty from court rulings puts pressure on XRP
The U.S. Securities and Exchange Commission stated that a recent favorable ruling for Binance does not directly apply to Ripple's situation. This uncertainty has led to a price drop as investors wait for a clear outcome in the Ripple vs. SEC case.
Underperformance compared to other cryptocurrencies
Compared to other top cryptocurrencies, XRP has been underperforming, having dropped 5% year-to-date, while other cryptocurrencies like Bitcoin have seen significant growth. This underperformance, combined with the ongoing Ripple v. SEC case and the company's efforts to expand in the U.S. market, may also impact the price.
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