The very popular coin known as Ripple or XRP, has continued to decline during the most recent crash in the cryptocurrency world, and many are unsure of why. The coin fell to as low as $1.17, which is an 18% drop from the price of $1.43 it hit earlier in the 3rd Monday of January. The coin was able to bounce back slightly gaining around $0.20 in value, but people are still unsure of what will happen to the price of this beloved coin.
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The coin has not been without difficulties in the past though, as many other coins have also faced these types of occurrences. Several analysts have stated that the reason for this most recent drop comes from the fact that investors may be nervous about the price, helping to urge the coin down in value. Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, stated that “With the massive dip we saw last week, it’s likely that investors who were shaken by the volatility – but smart enough not to sell at the bottom – are simply taking their profits while they can, or pulling out while they’re breaking even.”
A similar statement was made by Charles Thorngren, CEO of Noble Alternative Investments. He stated that “With the stock market continuing to rise and the government shutdown happening, there is more uncertainty in terms of investment,” he said. “Investors are looking to shy away from crypto, as it comes with less certainty, and invest in options they are more confident in perusing due to familiarity.” Given that the market on cryptocurrency is still relatively new, these types of happenings seem to be quite frequent. The hopes are high that the industry will be able to stabilize in the coming future.