Why is the Ripple (XRP) Price Down Today?

The broader cryptocurrency market noticed its worst deleveraging occasions in historical past all through the previous 24 hours. Ripple’s XRP didn’t go unscathed. In reality, it was one in every of the altcoins that painted large crimson wicks, dropping to as little as $1.2 on the Binance perpetual contracts charts.

That’s a 60% drawdown, which, not surprisingly, had a number of merchants liquidated. So a lot in order that, actually, virtually $1 billion value of leveraged positions have been worn out in the previous 24 hours.

Why is the XRP Price Going Down?

While causes stay unclear and speculative at finest, the reality is that the whole cryptocurrency market went by arguably its worst crash in years.

As CryptoPotato reported, near $20 billion value of leveraged positions have been liquidated in the previous hours, as Bitcoin’s worth dropped from greater than $122,000 to $105,000 on some crypto exchanges.

Naturally, and because it’s virtually all the time the case, altcoins had it worst. Believe it or not, XRP wasn’t even amongst the worst performers. ATOM, for example, noticed near 99% of its spot worth deleted earlier than bouncing again.

XRP additionally bounced again and is presently buying and selling at round $2.4 on Binance.

There is no particular motive that’s remoted to XRP regarding this market crash and its decline is doubtless attributed to the broader wipeout in the trade.

However, the occasion highlights the risks of leverage and, as soon as once more, reveals how rather more unstable altcoins are and the way a lot thinner their buying and selling order books are versus Bitcoin’s.

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