Ripples XRP extends losses in Wednesday trade, driven by several negative reports. Ripple price dipped to the level of $1.72 in early trading on Wednesday, the coin regained momentum in the evening session and currently standing just above $2.
The digital currency declined massively compared to last week’s level when it hit the highest level of $3.4. Before the latest plunge, Ripple soared 30,0000% in 2017.
Moreover, the dip in its price has also significantly impacted its market capitalization. It removed almost $40 billion in market capitalization in the last three days and is currently standing in third place compared to other cryptocurrencies in terms of market capitalization. Following the decline of Ripple, Ethereum holds the second position.
The steep decline in Ripple’s price was blamed on CoinMarketCap, as they have decided to eliminate data from the South Korean exchange.
Ripple’s chief said the CoinMarketCap sparked the selloff. He tweeted: “Coinmarketcap’s decision to exclude Korean prices from the displayed XRP price made the price appear to drop, likely triggering some panic selling.
Furthermore, the South Korean government has also decided to make strong regulations on cryptocurrencies, significantly impacting investors’ confidence in the future of digital currencies.
On the other hand, some analysts blamed that ripple was overvalued, forcing investors to take profit from the recent gains it generated last year. Moreover, the hype related to Ripple’s partnership with big banks has provided strong support in the last few months, but Ripple declined massively after the hype subdued.
Although several other cryptocurrencies were also falling since the start of this week, the ripple was among the biggest laggards, with a drop of close to 50% in the last few days alone.
Analysts expect ripple prices to remain volatile in the days to come. Although bullish investors are seeing the massive dip in its price as a buying opportunity, others believe that Ripple has limited upside potential due to concerns related to South Korea. Therefore, investors need to adopt a cautious approach if they are planning to invest in digital currencies.
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