The price of Ripple (XRP) experienced a significant decline today, following a broader downturn in the cryptocurrency market. Several factors have contributed to the drop, including market-wide sell-offs, reduced network activity, and ongoing uncertainty surrounding Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC).
Crypto Market Crash Weighs on XRP
The entire cryptocurrency market has been under a lot of pressure, with the global market cap of digital currencies dropping by roughly 8% when this was reported.
Bitcoin and other cryptocurrencies saw a plunge, with the market-leading cryptocurrency losing more than 7.22% to trade at $80,549.50 within the last 24 hours. Ethereum lost approximately 10%, while Binance coin (BNB), Solana, and Dogecoins dipped to approximately 9%.
Also Read: Here are the Three Most Likely Ways the Ripple vs SEC Lawsuit Will End
This has been compounded by a broad market sell-off affecting all the digital currencies, which has caused a further drop in XRP’s price.
Besides, approximately $560 billion has been wiped from the market within the past week. The declining risk appetite among investors has led to increased volatility, making it difficult for XRP to sustain any upward momentum. The market-wide slump has significantly contributed to XRP’s struggles today.
Declining XRP Network Activity Raises Concerns
A notable decline in network activity has also been linked to the recent XRP price drop. According to an on-chain analysis by expert Ali Martinez, XRP’s network activity has decreased by 50% since December.
The number of active addresses fell from 202,250 to 101,169, suggesting a drop in transaction volume and overall engagement.
The sharp decline in active addresses indicates reduced demand and participation within the XRP ecosystem. This downturn in user activity has negatively impacted investor sentiment, contributing to XRP’s recent price drop.
SEC Lawsuit Uncertainty Dampens Investor Sentiment
The Ripple vs. SEC case saga continues to be a significant event affecting the XRP price trend. The SEC has recently dismissed the legal cases against several other crypto companies; however, they have not made any public statement about the XRP case.
The unpredictable nature of the lawsuit has raised concerns among investors, impacting market confidence.
As legal analysts suggest, it will be resolved in the first half of 2025. New information indicates that key dates for the lawsuit settlement are on the horizon, and questions have been raised about the possibility of its resolution.
However, while waiting for the definitive judgment, XRP has the potential to fall due to these regulatory risks.
Conclusion
Ripple (XRP) faces downward pressure due to market-wide losses, declining network activity, and regulatory uncertainty. The broader crypto market slump has affected investor sentiment, while reduced engagement on the XRP network has raised concerns.
The prolonged SEC lawsuit also continues to weigh on XRP’s price movement. As market conditions evolve, traders closely monitor upcoming developments to gauge XRP’s next potential move.
Also Read: SEC Unlikely to Quickly Resolve Ripple (XRP) Lawsuit, Here is Why
