XRP has entered a steep correction phase in December, witnessing a significant 15% drop in a single day. The altcoin’s recovery appears challenging, hindered by heavy selling pressure on South Korean exchanges and ongoing political uncertainties. How can XRP bounce back? Let’s dive into the details.
XRP’s Price Plunge in December
The month began on a high note for XRP, trading at $2.2934 on December 1 and climbing to a peak of $2.7237 on December 2. However, this rally was short-lived. By December 9, XRP had plunged by 15.01% in a single day, hitting $2.2138 and showing no signs of recovery yet.
Over the past week, XRP’s performance has lagged behind other major cryptocurrencies. While Bitcoin rose by 1.5% and Ethereum saw a modest 0.2% dip, Solana fell by 8.3%. In contrast, XRP’s 9.4% drop underscores its vulnerability in the current market conditions.
Role of South Korean Exchanges
XRP’s sharp decline has been closely linked to intense selling activity on South Korean exchanges. Reports indicate that these sell-offs began at 7:45 UTC on December 9, driving XRP’s price down from $2.6005 to $2.2064. This selling pressure coincided with South Korea’s KOSPI index hitting a one-month low on the same day.
Trading data from the XRP/KRW pair reveals that negative volume trends originated in Korean markets, rippling across global markets. Additionally, South Korea’s political landscape has exacerbated the situation. The government’s decision to declare martial law, later rejected by parliament, has fueled market instability. This uncertainty further weighed on the KOSPI index, amplifying investor unease.
Future Prospects for XRP
Despite the current downtrend, XRP retains potential for recovery. A reduction in selling pressure from South Korean exchanges and stabilization in global markets could reignite momentum. However, factors such as political and economic uncertainty and broader market sentiment will play pivotal roles in determining XRP’s price trajectory.
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