The post Why XRP Price Dropped 10%? Why Traders Are Selling XRP appeared first on Coinpedia Fintech News
Since December 8, the XRP market has seen a decline of over 10.63%. On December 9 alone, the XRP price slipped by over 15.01%. The market has not yet recovered from the fall. Some think Korean exchanges played a key role in the December 9 price correction. Let’s examine the scenario deeply for clarity. Ready?
XRP’s Price Decline and Performance
At the start of December, the price of XRP was at around $2.2934. On December 2, it touched a peak of $2.7237. Since then, the momentum has weakened considerably. Between December 3 and 5, the XRP price declined from $2.7237 to $2.2428. Between December 6 and 7, XRP buyers attempted to help the market recover from the fall, but failed miserably. On December 9, with a serious single-day fall of 15.01%, the market touched a low of around $2.2138. The market has not yet recovered from the correction.
In the last seven days, Bitcoin (+1.5%), Ethereum (-0.2%) and Solana (-8.3%) have outperformed XRP’s -9.4%.
Key Contributors to the XRP Price Drop
XRP is one of top altcoins which have shown impressive growth in the latest crypto bull run. Since November 5, it has displayed a massive surge of over 366.3%.
Many consider profit-taking as a key reason for the latest XRP sell-off. Data also supports this argument.
Interestingly, reports indicate that Korean platforms played a significant role in accelerating the decline.
Early XRP Sell-Off in South Korean Markets
Reports suggest that the sell-off began at 7:45 p.m UTC on December 9 on Korean exchanges.
At the start of December 9, the XRP price was at $2.6005. By the end of that day, it plummeted to a low of $2.2064. Notably, on the same day, the KOSPI index also declined to a monthly low of 2,360.24 KRW.
Reports also note that the XRP/KRW showed sharper negative CDV compared to XRP/USD or XRP/USDT.
Data strongly suggests that the trend of XRP sell-off began on Korean exchanges, and heavy selling occurred on these exchanges on December 9.
Hence, it is fair to assume that the Korean XRP sell-off trend has impacted the XRP market severely.
Instability in Korean Markets
Since the beginning of this month, the political climate in South Korea has been highly volatile. The country saw President Yoon Suk Yeol declaring a martial law order, citing threats to national security from North Korea sympathisers, and lawmakers aggressively rejecting the order, forcing the president to withdraw it.
On December 2, the KOSPI index was at 2,455.24 KRW. On December 3, it touched a monthly peak of 2,500.53 KRW – at least 3.64% lower than the November peak of 2,591.59 KRW. Between December 5 and 9, the market dropped from 2,471.49 KRW to 2,361.23 KRW. Although, in the last two days, the market has grown by 2.41%, it has not yet recovered from the previous correction.