- XRP slumps as inflation fears rise after Home Depot update.
- Crypto markets tumble with XRP falling below the $3 level.
- Inflation signals spark selling pressure, pushing XRP price sharply lower.
XRP dropped to $2.88 on Tuesday, recording a 3.95 percent loss in just 24 hours and surprising many traders with its sudden decline. Bitcoin and Ethereum both decreased by 2.8 percent and 4.3 percent, respectively, over the same time.
As shown by statistics, after the decline, XRP’s market capitalization decreased to $171.35 billion, and the volume of transactions increased by 1.72 percent to $6.87 billion. The token’s chart showed a sharp decline below $3.00, with price momentum turning negative in the day session.
Also Read: 320% Increase Between 10,000 and 100,000 XRP Holders – Here’s What’s Happening
Why XRP is Facing Selling Pressure
The immediate trigger for XRP’s downturn came from broader economic concerns tied to Home Depot’s latest earnings update. Home Depot announced plans to increase the prices of some items in response to pressure created by tariffs. This was seen as an indication that inflation may take place at a higher pace than anticipated, and thus, a risk-off mood took place in the financial markets.
XRP’s decline reflects how inflation concerns feed into cryptocurrency valuations. Rising inflation may hinder the Federal Reserve from relaxing interest rates, thus curtailing liquidity conditions that normally favor digital assets. This change in perspective caused investors to reduce exposure, which caused visible price weakness.
XRP Price Movement
Trading data showed XRP opening above $3.00 before sliding steadily throughout the day to $2.88, with no recovery above $2.95. The red momentum on the chart indicated growing selling pressure despite the slightly higher overall volume, indicating more sellers than buyers in the market.
Nevertheless, the decline has pushed XRP down by almost 49 percent on an annualized basis, indicating that the long-term trend is yet to be washed away. The recent movement, however, affirmed that macroeconomic drivers remain the driving force in terms of short-term trading action in the cryptocurrency market.
Source: CoinMarketCap
XRP’s sudden decline is directly tied to inflation fears, which rattled investor confidence after Home Depot’s pricing announcement. With macroeconomic signals weighing heavily on sentiment, XRP and other cryptocurrencies remain vulnerable to swift market corrections.
Also Read: Bitcoin, Ethereum, XRP, and Other Altcoins Drop in 24 Hours as Mid-Caps Soar
