The cryptocurrency market crash has deepened, with XRP falling to the $1.2 price level. CoinGecko’s XRP data shows that XRP’s price has dipped by 5.7% in the daily charts and 14.3% over the previous month. XRP last traded at around this price level in early February of this year. With volatility high, let’s discuss what’s pulling the market down and how much lower XRP’s price could go.
Why Is XRP’s Price Crashing And How Low Could It Go?
XRP’s latest correction comes amid a market-wide dip. Bitcoin (BTC) fell to the $65,000 price level earlier today. Most other assets are following BTC’s lead. The crash is because of the US-Iran conflict re-escalating. Peace talks between the two countries failed to reach a conclusion. Military operations seem to have restarted. There are reports that Iran has already launched missiles against US bases in the Middle East. The development has led to a massive dip in investor sentiment. High-risk assets, such as XRP and other cryptocurrencies, are taking a particularly bad hit.
XRP’s price dip also comes after high inflation reports in May. The crypto market began its downward descent after inflation figures came in higher than anticipated. The high figures significantly diminished hopes for an interest rate cut. Higher rates may be a challenge for XRP’s price. The US-Iran conflict could add additional pressure on the economy, which could further drive up inflation numbers.
Also Read: US Senate adds Crypto Clarity Act to Legislative Calendar
The current price levels are the lowest XRP has fallen to since its November 2024 price spike. XRP’s price shot up in late 2024 after investors began pricing in the settlement of the SEC vs. Ripple lawsuit. If XRP falls below the $1 mark, it could tumble towards $0.50, as it does not appear to have any support. However, there is a chance that XRP could hold on to $1.2 and begin a sideways movement from here.
Credit: Source link
