XRP is experiencing a sharp downturn, plummeting 8% on Monday as market sentiment shifts and profit-taking intensifies. Once trading at $0.42, the cryptocurrency dropped rapidly to $0.37 within hours, wiping nearly $800 million from its market capitalization. This decline pushed XRP’s total valuation below the $20 billion mark, now sitting at approximately $19.1 billion—with potential to dip further toward $18 billion if selling pressure continues. With double-digit losses possible in the coming hours, investors are closely watching key support levels and broader market trends.
Recent Gains Give Way to Profit Booking
For the past two weeks, XRP stood out as one of the few cryptocurrencies in positive territory, gaining 12% despite turbulence in the digital asset space following the FTX collapse. Its upward momentum was fueled by growing optimism surrounding Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Signs that the case could conclude favorably for Ripple—potentially setting a precedent for crypto regulation—boosted investor confidence and drove buying activity.
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However, as legal headlines have quieted down, the rally has lost steam. The current price correction appears largely driven by short-term profit-taking. Traders who entered positions earlier this month, capitalizing on the bullish momentum, are now cashing in gains. This wave of selling has created sustained downward pressure on XRP, reversing recent progress.
Technical Outlook: Key Levels to Watch
Technically, XRP has struggled to break past the $0.50 resistance level for over six months. Although it briefly touched $0.51 in October, the surge was short-lived, followed by an immediate pullback. Repeated failures at this psychological barrier suggest strong resistance, likely due to historical sell orders clustered around that price point.
Now, with the price down to $0.37 and down 7.1% in the last 24 hours, attention turns to critical support zones. If XRP can stabilize above **$0.35**, there remains a chance for recovery and a potential retest of lost levels. A bounce from this zone could signal renewed buying interest and pave the way for consolidation before another upward attempt.
Conversely, failure to hold $0.35 may open the door to further declines, possibly leading to new weekly lows. Traders should monitor volume patterns and on-chain data for early signs of capitulation or accumulation.
Market Context and Broader Sentiment
While XRP’s drop is partly internal—driven by profit-taking—it also reflects broader market dynamics. Cryptocurrencies remain highly sensitive to macroeconomic signals, including interest rate expectations, inflation data, and risk appetite in traditional financial markets.
Stablecoin flows offer additional insight into investor behavior. In recent weeks, significant outflows from crypto platforms into stablecoins have signaled a cautious shift—investors securing profits and preserving capital amid uncertainty.
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Although XRP remains far from its all-time high of $3.40 reached in January 2018—currently down 88.8% from that peak—its underlying utility in cross-border payments and growing adoption by financial institutions continue to support long-term value propositions.
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Frequently Asked Questions (FAQ)
Q: Why did XRP drop 8% today?
A: The 8% drop was primarily triggered by profit-taking after recent gains fueled by positive developments in Ripple’s SEC lawsuit. With momentum slowing, short-term traders began selling their holdings, leading to increased downward pressure.
Q: Is the Ripple vs. SEC case over?
A: As of now, the case is not fully concluded, but recent rulings have favored Ripple on key issues—particularly regarding the sale of XRP on exchanges not constituting securities offerings. Final decisions on institutional sales are still pending.
Q: Can XRP recover and reach $0.50 again?
A: Yes, but it will require sustained buying pressure and likely a resolution or favorable development in the SEC case. Historically, $0.50 has been a strong resistance level, so breaking above it would be a significant bullish signal.
Q: What is XRP’s current market cap?
A: XRP’s market capitalization is currently around $19.1 billion after falling below $20 billion due to the recent price decline.
Q: How does XRP compare to other major cryptos right now?
A: While Bitcoin and Ethereum dominate market discussions, XRP continues to play a unique role in global payments infrastructure. Its performance often correlates less with general market moves and more with regulatory news specific to Ripple.
Q: Should I buy XRP during this dip?
A: Investment decisions should be based on individual risk tolerance and research. That said, some analysts view dips like this as opportunities to accumulate before potential regulatory clarity unlocks new growth phases.
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Final Thoughts
The recent 8% fall in XRP underscores the volatile nature of cryptocurrency markets—even for assets backed by real-world use cases and legal progress. While short-term pain is evident, many long-term observers remain cautiously optimistic about Ripple’s position in the evolving digital finance ecosystem.
Market corrections are natural after rallies, especially when driven by news speculation. The key question now is whether this pullback becomes a healthy consolidation or signals deeper weakness. Monitoring support at $0.35 and upcoming legal developments will be crucial in determining XRP’s next major move.
As always in crypto, staying informed, managing risk, and understanding the fundamentals behind price movements can make all the difference between reactive trading and strategic investing.