The price of Ripple’s XRP token has plunged more than 40% from the all-time high it reached last week.
The XRP token had fallen to as little as $2.25 at the time of the report, representing a roughly 41.4% decrease from the all-time high of $3.84 attained last week, according to CoinMarketCap.
At this latest price, XRP was down roughly 33.6% over the last 24 hours, additional CoinMarketCap figures show.
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As for what caused the digital token to suffer such a sharp decline, analysts pointed to several causes.
CoinMarketCap Excludes Korean XRP Prices
CoinMarketCap recently decided to exclude XRP prices provided by Korean exchanges from its average price.
This move has been credited with causing the digital token to lose roughly $20 billion worth of market capitalization (market cap) around 05:00 UTC today.
Cryptocurrency trader Marius Rupsys emphasized that this move had a “big impact,” as the XRP price on Korean exchanges is 50%+ higher than it is on Western exchanges.
Other analysts emphasized the strong run the digital token has had lately, noting that it may very well have been time for traders to begin taking profits.
A certain amount of this activity was “inevitable,” said Iqbal Gandham, UK managing director for eToro.
Brad Chun, chief investment officer of hedge fund Shuttle Fund Advisor, also singled out profit taking as a major factor helping push XRP prices lower.
Some market observers claimed that XRP was bound to experience a correction, emphasizing how far and how fast its price climbed.
“Ripple’s correction was overdue,” said Jeff Koyen, CEO of 360 Blockchain USA, a subsidiary of 360 BlockChain.
This pullback fits into a broader trend, he said.
“It was a very good weekend for the altcoins, and today we’re seeing corrections across the board.”
Mati Greenspan, the senior market analyst for social trading platform eToro, emphasized that after rising more than 1,000% over the last month, a sizable pullback is to be expected.
Charles Hayter, co-founder and CEO of data platform CryptoCompare, also weighed in on XRP’s sharp fluctuations, stating that “what goes up quick comes down fast too.”