The price of the native token of the XRP Ledger is down by more than 4.2% over the last 24-hour period to now trade at $2.174. The cryptocurrency is down more than 20% from its monthly high of $2.85.
XRP price chart via CCData.
The cryptocurrency is nevertheless up more than 320% since Nov. 5, when Republican presidential candidate Donald Trump won the U.S. elections after campaigning on a pro-crypto stance.
Its recent price drop is likely still a result of an ongoing cryptocurrency market sell-off that started after the Federal Reserve cut interest rates by 25 basis points and its Chair Jerome Powell suggested a more hawkish stance, suggesting fewer rate cuts would be made next year.
Powell’s comments dampened investor sentiment and affected risk assets across markets, with the stock market’s benchmark index, the S&P 500, plunging by more than 3.5% before recovering, while still being down around 0.5% since the rate cut.
A strengthening U.S. dollar is also likely to be negatively impacting cryptocurrency prices. The U.S. Dollar Index, which measures the value of the greenback relative to a basket of six major fiat currencies including the euro, the yen, and the British pound, is up more than 2% this month.
Positive market sentiment has nevertheless been benefiting XRP, with popular cryptocurrency analyst Ali Martinez suggesting that if the cryptocurrency’s price can remain above the $2.2 mark, it may end up moving up to the $2.7 resistance level.
As reported, another prominent cryptocurrency analyst has recently suggested that XRP’s price is currently the “most bullish looking chart” after the price of the cryptocurrency lost nearly 20% of its value from its early December high of $2.85.
The rise of XRP since November had several catalysts behind it, including Republican candidate Donald Trump winning the U.S. presidential elections and various spot XRP exchange-traded fund filings, along with Ripple’s launch of its RLUSD stablecoin.
Featured image via Pexels.
