Ripple’s XRP token declined today, outpacing the losses suffered by many other digital currencies.
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The price of XRP fell to as little as $1.17, a roughly 18% decline from its daily high of $1.43, CoinMarketCap figures show.
At the time of report, the digital token had bounced back somewhat, trading at $1.212, but had still fallen more than any other top 10 cryptocurrencies listed on CoinMarketCap.
XRP experienced these losses as the broader digital currency market also moved lower, its total market capitalization (market cap) falling more than 13% between its daily high and low, additional CoinMarketCap data reveals.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Wary Investor Sentiment
Several analysts pointed to nervous investors when explaining why cryptocurrencies were pushing lower today.
Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital, spoke to this trader sentiment.
“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.”
Charles Thorngren, CEO of Noble Alternative Investments, offered similar input.
“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.”
Charles Hayter, co-founder and CEO of data provider CryptoCompare, emphasized that the markets are “still shaky” because investors are “skittish.”
Ripple’s XRP token has fallen more than the broader cryptocurrency markets because there is significant uncertainty surrounding the digital asset, said analysts.
“Ripple is definitely trying to find its equilibrium after the meteoric growth it experienced in 2017,” said DiPasquale.
“The market still isn’t certain what the true valuation of XRP is, based on the role it plays in the larger Ripple infrastructure. Also, people have been holding Ripple since it was pennies, so the growth is intense and we have to remember the bigger picture of its immense growth these year.”
Collin Plume, president of Noble Alternative Investments, also emphasized that the market is having a difficult time determining XRP’s price. He said:
Ripple has not recovered in short-term pricing since Coinbase dispelled the rumors that it was going to be the next coin on the platform. In a normal market this coin would have stabilized with the announcement of the partnership with MoneyGram. Ripple will continue to be a volatile coin until the effects of the MoneyGram partnership are established.