Bitcoin

Notable

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/xrp-price-faces-significant-drop" data-wpel-link="internal" rel="noopener noreferrer nofollow">XRP Price Faces Significant Drop</a><br></p>
<p style="text-align: justify"><a href="https://en.bitcoinhaber.net/ripple-strengthens-ecosystem-with-new-partnership" data-wpel-link="internal" rel="noopener noreferrer nofollow">XRP</a> experienced a sharp decline of over 12% on July 5, falling to $0.381, which is its lowest value in three months. This drop is primarily due to a combination of large-scale sell-offs in the Bitcoin market and the U.S. Securities and Exchange Commission’s (SEC) actions against Ripple, reflecting a broader negative trend in the crypto market.</p>
<h2 id="what-is-happening-with-xrp">What is Happening with XRP?</h2>
<p style="text-align: justify">The decline in XRP’s price can be attributed to reports that the German government is liquidating hundreds of millions of dollars worth of Bitcoin seized from various crimes, while still holding $2.4 billion in cryptocurrency reserves. Additionally, the defunct Mt. Gox exchange has begun returning 140,000 Bitcoins to its creditors, raising concerns about the potential sale of the $8 billion worth of Bitcoin.</p>
<p style="text-align: justify">This situation has led to a significant drop in the market values of smaller cryptocurrencies like XRP, Ethereum, and BNB, which are highly correlated with Bitcoin. As of July 5, the daily correlation coefficient between XRP and Bitcoin was 0.94, indicating a strong link between their price movements. Investors are likely liquidating altcoin positions to cover losses in the Bitcoin market.</p>
<h2 id="notable-details-in-the-futures-market">Notable Details in the Futures Market</h2>
<p style="text-align: justify">The decline in XRP’s price was exacerbated by substantial long liquidations in the futures market. On July 5, the XRP futures market saw over $7 million in long position liquidations within 24 hours, compared to only $298,370 in short positions liquidated during the same period. This forced selling by bullish <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> has intensified the downward pressure on XRP’s price.</p>
<p style="text-align: justify">Alongside the price drop, there has been a decrease in open interest and funding rates for XRP. For instance, the total number of outstanding XRP contracts fell from $577.74 million to $524.74 million, and the weekly funding rates dropped from 0.13% to 0.05%. These indicators suggest a loosening of positions and increased caution among XRP investors.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">– Monitor Bitcoin market activities, as they significantly influence XRP prices.<br> – Be aware of government actions and liquidations of large cryptocurrency holdings.<br> – Consider the impact of futures market liquidations on cryptocurrency prices.<br> – Watch funding rates and open interest for signs of market sentiment shifts.</p>
<p style="text-align: justify">The substantial market movements indicate a period of heightened volatility for XRP and other cryptocurrencies. Investors should remain vigilant and adjust their strategies accordingly to navigate these turbulent times.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/xrp-price-faces-significant-drop" data-wpel-link="internal" rel="noopener noreferrer nofollow">XRP Price Faces Significant Drop</a></h5>

XRP Price Faces Significant Drop

Table of Contents

BH NEWS

Muita 5. heinäk. 2024 julkaistuja artikkeleja

Decrypting Bitcoin's Market Sentiment: Will $55k Be the Next Bottom?

Chiliz Integrates With PUML to Deliver Gamified Health, Wellness, and Move to Earn for Sports Fans

eCash Ensures Secure, Quick Transactions

Rollblock (RBLK), MultiversX (EGLD), and Immutable (IMX) Rally: Which One Is Likely To Give You 1...

Community Finds Best Place to Trade and Buy the Solana ETF, Hidden Ethereum DEX Takes Spotlight

Understanding Token Vestings: A Guide

Join our free newsletter for daily crypto updates!