Why is Ripple (XRP) price down 17% today?

TL:DR;

XRP continues to dig fresh local bottoms as the asset fell to multi-day lows below $2 twice in the past 24 hours. This comes just days after some analysts speculated that Ripple’s token had already peaked during this cycle.

Remember the massive surge in XRP prices that started shortly after Donald Trump won the US presidential election and intensified when the current SEC Chairman Gary Gensler said he would step down on January 20, 2025.

The cross-border token soared more than 400% in the one-month period, rising from less than $0.6 to nearly $3 to mark its highest price since January 2018.

However, this is where the picture changed for the asset, as it quickly began to lose momentum, despite the community predicting a break of $3 and potentially a new all-time high above $3.4.

CryptoPotato reported on December 5 that XRP had plunged 17% in just two days, and many began to speculate that it had already peaked during this cycle and will continue to pull back in the following days.

They justified their position by attributing the large gains recorded during most of November to the hype surrounding the changes to come in the United States and, in particular, at the SEC. Once Trump made his announcement about the new chairman of the SEC, who is indeed pro-crypto, XRP began to pour heavily – a classic “sell the news” event.

The Ripple coin had fallen to $2.2 at this point. It managed to bounce back to $2.6 in the following days, but has been in a state of freefall since the start of the current business week. A few minutes ago, it dropped below $2 for the second time since yesterday evening.

As of now, it is losing the battle for third place in terms of market cap to Tether, as its own has dropped to $114 billion, $24 billion below USDT.

Additionally, XRP is among the few larger-cap alternatives with double-digit price dumps on a daily basis. In fact, it is the best performer of the top 15, aside from Shiba Inu.

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