XRP Price Plummets to $3, Swiping $60 Million from Ripple Bulls: Insights
In a surprising turn of events, Ripple's cross-border payments token, XRP, has taken a significant hit, plunging to a weekly low. Earlier today, XRP stood at over $3.3, but a series of events led to a steep decline.
Before the latest plunge, XRP had already retraced to under $3.25. The primary cause of this downturn was intense sell pressure following the US government's announcement of an increase in wholesale level inflation by the highest percentage since June 2022. This inflation data likely heightened concerns about the macroeconomic environment, prompting traders to liquidate positions—including XRP—to lock in profits or reduce risk.
The decline was amplified by a surge in trading volume and liquidation activity, especially during key trading windows. In early August, approximately $28 million worth of XRP was liquidated daily. The entire crypto asset class saw liquidations near $500 million in recent 24-hour periods during sharp declines, including XRP.
Long positions in XRP are responsible for more than 92% of the total losses. The bears were particularly persistent during the latest plunge, driving XRP to a weekly low on Bitstamp and other exchanges. In the past hour alone, Ripple's token has dropped by 4%, currently sitting at $3.1.
Over a daily scale, Ripple's token has dropped by over 5.5%. In the past 24 hours, XRP traders have collectively lost over $60 million. Ethereum (ETH) has led the losses with $307 million in liquidations, followed closely by Bitcoin (BTC) with $256 million.
The total value of liquidations in the past 24 hours has jumped above $1 billion, reflecting a correction after a strong rally earlier in July and early August. Despite the current downturn, the overall sentiment in the digital asset space was bullish earlier today, with calls for a new all-time high for XRP at $3.65.
However, the market has turned red within the past hour, with traders adopting a more cautious approach in the face of the unfavorable inflation data and the overheated price environment. It remains to be seen how the market will recover from this latest downturn.
- Despite a bullish sentiment earlier today, calling for a new all-time high for XRP at $3.65, the market has taken a turn, with traders adopting a more cautious approach due to the unfavorable inflation data and overheated price environment, leading to the liquidation of positions including XRP.
- The decline in XRP's price was exacerbated by a surge in trading volume and liquidation activity, particularly during key trading windows, with approximately $28 million worth of XRP being liquidated daily in early August.
- In the wake of the US government's announcement of an increase in wholesale level inflation and the subsequent heightened concerns about the macroeconomic environment, there was intense sell pressure on XRP, causing a significant drop in its price, leading to over $60 million in losses for XRP traders in the past 24 hours.
