Ripple’s XRP token is on the verge of falling below $2. The XRP was last traded for under $2 in early April this year. This asset fell 2.6% on the daily chart, 7% on the weekly chart, 9.8% on the 14-day chart, and 13.4% on the previous month. XRP still maintains some healthy profits last year, attracting 313.8% since June 2024.
Cryptocurrency is sluggish amid high volatility
In addition to XRP, the larger cryptocurrency market has experienced a rapid DIP over the past few days. Global crypto market capitalization has immersed 2.8% to $3.23 trillion in the last 24 hours. According to Coinglas data, assets worth $651.21 million have been liquidated in the last 24 hours. Bitcoin (BTC) has dropped to a level of $101,000.
XRP and the larger market dip could be due to increased volatility resulting from global geopolitical tensions. The US collided with three Iranian nuclear sites, marking a serious escalation in the ongoing Iran-Israel conflict. Many fear long-term military efforts in the Middle East.
Market dips may be further driven by the Federal Reserve if interest rates are changed. Interest rate cuts can increase investor confidence and increase inflows into dangerous assets.
What do you know before purchasing an XRP dip?
If sentiment improves, Ripple’s XRP tokens are more likely to recover. The SEC has dropped the lawsuit against fintech companies, and the path seems more or less clear to grow.
It is also likely that the SEC will approve the Spot XRP ETF within this year. ETFs can lead to a massive surge in institutional inflows into assets. Such a scenario could lead to XRP hitting a new high.
Ripple has also seen incredible adoption in the global financial ecosystem. XRP could benefit greatly from an increase in blockchain adoption rates.
