What happened?
XRP experienced a sharp decline over the weekend, wiping out the gains of its September bull run and pushing its price below $3. This drop seems to be due to market participants selling off following the launch of the first spot XRP ETF combined with a broader market pullback to begin the week.
Who does this affect?
This significant drop affects XRP holders, crypto traders, and investors who may have been banking on bullish XRP price predictions. A total of 404,386 traders were liquidated within 24 hours, resulting in losses worth $1.7 billion, mostly affecting long investors.
Why does this matter?
The decline of XRP matters as it signals a potential shift in market sentiment, which directly influences the trading behavior. However, despite the recent decline, the U.S macro narrative still favors bulls, with easing market conditions potentially paving the way for XRP’s bull run to resume. It’s a reminder for investors about the volatile nature of cryptocurrency markets and the importance of continuous market monitoring.