NAIROBI (CoinChapter.com)— XRP continues to face sharp declines as South Korea’s political instability and Ripple’s ongoing U.S. legal battle weigh heavily on the cryptocurrency market. The token has dropped 2% in the past 24 hours, reflecting a broader market downturn.
Political Crisis in South Korea Sends Shockwaves Through Markets
South Korea’s political tensions escalated after an arrest warrant was issued against impeached President Yoon Suk Yeol on Dec. 3. The move followed Yoon’s controversial attempt to impose martial law, which was quickly overturned by parliament. The fallout led to market instability, impacting both traditional and digital assets.
South Korea issues warrant for ex-president. Source: X
The South Korean won plunged to a 16-year low, trading below 1,470 per dollar. It has lost over 12% in 2023, marking it as the weakest currency in emerging Asia. The Bank of Korea reduced its interest rate to 3% in December, but the measure failed to stabilize the currency amid economic concerns.
XRP, a favorite among South Korean traders, was directly impacted. Its price fell below 3,000 won on Upbit, marking a 12% drop over the past week. The global cryptocurrency market mirrored this downturn, with the market cap dropping by 1.3% to $3.22 trillion.
XRP Battles Dual Pressures: South Korean Volatility and U.S. Legal Uncertainty
XRP also faces headwinds from its legal battle with the U.S. Securities and Exchange Commission (SEC). The case centers on whether XRP qualifies as a security, and a Jan. 15, 2025, deadline for the SEC’s next filing looms large.
Optimism remains high among XRP supporters, fueled by the anticipated appointment of Paul Atkins as SEC Chair. Atkins, known for his pro-crypto stance, could potentially soften the regulatory body’s approach. However, the lawsuit continues to cast a shadow over XRP’s performance.
In December, XRP’s trading volume fell sharply, dropping from $37.5 billion to $2.5 billion. This decline came despite a bullish start to the month, when XRP outperformed peers like Bitcoin and Ethereum with a 247% annual return.
XRP targets $3-$5, $9-$10 possible rally. Source: X
Peter Brandt, a technical analyst, forecasts a potential rise to $2.71, while others like MikyBull Crypto predict a rally to $4 if regulatory pressures ease.
For now, XRP traders face a volatile landscape shaped by political and regulatory developments. Both South Korea’s internal struggles and Ripple’s legal battle will remain critical factors influencing XRP’s trajectory in the coming months.
