Why Ripple (XRP) Price Dropped 18% in 36 Hours?

TL:DR;

XRP was the best performer from the large-cap highs until yesterday afternoon, but its price has fallen sharply by double digits since then. Could it be related to just the market-wide pullback, or is there more to the story, such as another “sell the news” event?

Remember the price action around XRP that took place earlier this week. The asset was hovering around $2.35, but exploded on Monday evening to nearly $2.6 after the company behind it announced that its long-awaited stablecoin would launch the following day, on December 17.

The positive moves continued on the launch date as XRP soared to a multi-week high of $2.73 (on Bitstamp and other exchanges).

However, Ripple’s cross-border token failed to maintain its momentum despite multiple very bullish price predictions.

On the contrary, it started to pull back and fell as low as $2.50 earlier today before the market-wide correction after the Fed’s latest rate cut pushed it violently south to a 6 day low of $2.23.

While this drop can be attributed to the overall crypto market slump, XRP’s pullback is more painful than most, falling 11% on a 24-hour scale and 15% on a 36-hour scale.

XRPUSD. Source: TradingView

As such, this could fall into the “sell the news” category, given that XRP jumped ahead of the RLUSD launch and its price has fallen after the new token went live for trading.

Also, the situation surrounding a potential XRP ETF in the States doesn’t look too bright, at least according to experts in the field. As previously reported, Bloomberg’s Eric Balchunas warned that Ripple could be behind other projects that could be greenlit first, such as Litecoin and Hedera.

The ETF expert predicted that this wait could be related to Ripple’s ongoing legal battle with the US Securities and Exchange Commission, although there will be a seismic shift in the agency’s leadership in the next months

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