XRP has experienced a notable drop after reaching a new record high of $3.65 last week, now trading around $3.09, reflecting a decline of over 15%. This retreat occurs amidst a broader downtrend in the cryptocurrency market where major altcoins, like Solana and Dogecoin, have also seen losses. Analysts attribute XRP's volatility to macroeconomic factors and overall market exhaustion. Katie Talati, a director at Arca, explains that rapid price movements in crypto markets result in sharp pullbacks, which are less common in traditional markets. The current market atmosphere is heavily influenced by expectations surrounding U.S. Federal Reserve interest rate decisions, as low rates historically enhance liquidity for risk assets like cryptocurrencies. Despite the recent downturn, some analysts remain optimistic about XRP’s potential for future gains, particularly given its popularity among retail investors and the recent resolution of legal challenges that have previously hampered its growth. These developments may position XRP as a more attractive and less risky investment option moving forward.

Source 🔗