Why is the price of Ripple (XRP) down today?

XRP has managed to become the fourth largest cryptocurrency by total market capitalization, surpassing SOL and BNB.

At one point, he even managed to overtake USDT and claim third place. It is up more than 45% in the last seven days, clearly being the best performing altcoin in the top 10.

However, over the past few days, things have changed a bit and XRP is now in a correction state, down 5.3% in the past day alone.

Source: TradingView

As you can see from the chart above, XRP broke above $2.9 the other day and has been declining ever since, losing around 20% in the process. Interestingly, this happened when Donald Trump selected Paul Atkins as the new chairman of the US Securities and Exchange Commission. In Trump’s words:

“Paul is a proven leader for common sense regulation. He believes in the promise of robust and innovative capital markets that respond to the needs of investors and provide capital to make our economy the best in the world. (…) It also recognizes that digital assets and other innovations are crucial to making America greater than ever.”

So, if the next SEC chair is relatively pro-crypto, why is the price of XRP falling? Well, it is important to put things in perspective and understand that the cryptocurrency was up almost 400% in less than 30 days at one point (before the recent correction). Nothing ever goes up in a straight line and corrections must be made.

Another reason, besides the overheating of the market, could be the precise fact that Trump announced his candidacy for the presidency of the SEC. Many traders may have bought the cryptocurrency in anticipation of its election, essentially turning the event into a “news sale.”

On top of everything else, there’s also the fact that the entire market seems to be going through a correction over the past 24 hours. Bitcoin, for once, dropped to $92,000 in a quick crash before recovering to where it is currently trading.

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