XRP has erased recent gains after hitting a record high of $3.65, dropping more than 15% to around $3.09. This decline is part of a broader downturn affecting many altcoins like Solana and Dogecoin. Analysts attribute the drop to macroeconomic factors and market exhaustion. Katie Talati from Arca suggested that abrupt price movements are common in crypto, as opposed to traditional markets, leading to pullbacks. Investors are now closely watching the U.S. Federal Reserve's interest rate decisions, as low rates typically support risk-on assets like crypto. Despite the drop, XRP’s past performance and regulatory clarity after settling a long-standing SEC lawsuit position it favorably among retail investors. The founder of Ripple, Chris Larsen, also moved a substantial amount of XRP to exchanges, indicating potential profit-taking. Nonetheless, Talati remains optimistic, suggesting XRP has room to grow due to its popularity among retail investors.

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