Ripple’s XRP price drops $5 billion in 24 hours
Virtual currency XRP is one of the biggest losers of this latest cryptocurrency bloodbath. Almost $12 billion of Ripple’s XRP is wiped off the market and it continues to do so.
Ripple XRP is trading at $0.69 after opening trading on Monday at $0.82, dropping by over 14%. Despite many good news price continues to crash lower. Earlier today the price looked as though it was on the verge of breaking out of its downtrend and was going to rebound higher after a sharp decline overnight. Unfortunately, this hasn’t been the case and the third-largest cryptocurrency has given back its early gains and finds itself pushing lower again and down to its lowest level this week.
Experts say that despite the recent drop in value which is affecting most of the major cryptocurrencies. Ripple still has the potential to grow and increase its market share because of the scalability of the currency and the value it offers to the users.
Ripple CEO Brad Garlinghouse said in an interview with NBC: “The reason why XRP is unique is, it settles in three seconds, so I’m not taking risks on kind of volatilities, where bitcoin takes hours. We are a thousand times faster than bitcoin and a thousand times cheaper the bitcoin to settle a transaction.”
U.S. Senate Committee hearing set for 6th February
In the meantime, the chairman of the Securities and Exchange Commission (SEC), Mr. Jay Clayton, is set to appear before the U.S. Senate Committee on banking, housing, and urban affairs. The meeting set for 6th Feb 2018 is titled; virtual currencies. Mr. Clayton will expound on the oversite role of the SEC and the Commodity Futures Trading Commission (CFTC).
Investors have been turning their backs on cryptocurrencies amid concerns over increasing regulatory scrutiny, ICO advertising bans, alleged price manipulation on the Bitfinex exchange, and bans by credit card providers.
It wasn’t just Ripple sinking lower. Both bitcoin (BTC) and Ethereum (ETH) have fallen over 20% during the last 24 hours.
What’s next for Ripple?
At this stage I think it is unclear whether cryptocurrencies have found their bottom yet. I suspect, however, that they have not.
I fear this could mean further selling pressure over the coming days of a similar magnitude to what has been experienced in the last few weeks.
In light of this, I don’t believe the risk/reward on offer in the industry is anywhere near compelling enough to make an investment today. As a result, I continue to believe that the prudent thing to do at this point is to watch on from the safety of the sidelines and focus on some of the quality up and coming shares that the local share market has to offer.
Sources: Fool.com, Business Insider, CNBC.
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