Since December 8, the XRP market has experienced a notable decline of over 10.63%. In a dramatic turn on December 9, the price of XRP plummeted by more than 15.01%. Despite ongoing efforts, the market has yet to recover from this significant downturn. Speculation suggests that Korean exchanges may have played a crucial role in this price correction. Let’s delve deeper into this scenario to gain better clarity.
XRP’s Price Decline and Performance
At the onset of December, XRP was priced at approximately $2.2934. On December 2, it reached a high of $2.7237, but this momentum proved unsustainable. From December 3 to 5, the price of XRP fell from $2.7237 to $2.2428. Attempts by buyers on December 6 and 7 to bolster the market were unsuccessful. By December 9, XRP faced a severe single-day drop of 15.01%, hitting a low of around $2.2138. This correction has left the market struggling to recover.
Over the past week, other cryptocurrencies like Bitcoin, Ethereum, and Solana have shown varied performances, with Bitcoin rising by 1.5%, Ethereum decreasing by 0.2%, and Solana experiencing an 8.3% drop. In contrast, XRP has underperformed, recording a decrease of 9.4%.
Key Contributors to the XRP Price Drop
XRP is recognized as one of the leading altcoins, having demonstrated remarkable growth during the most recent crypto bull run. From November 5, the coin surged by an impressive 366.3%. However, the recent sell-off is largely attributed to profit-taking, as supported by data trends. It is noteworthy that reports highlight the significant influence of Korean exchanges in hastening this decline.
Early XRP Sell-Off in South Korean Markets
Insights reveal that the sell-off commenced at 7:45 p.m. UTC on December 9 on Korean exchanges. At the beginning of the day, XRP was valued at $2.6005, but by day’s end, it had tumbled to a low of $2.2064. Coincidentally, the KOSPI index also hit a monthly low of 2,360.24 KRW on the same day. The XRP/KRW trading pair exhibited a sharper negative cumulative distribution volume (CDV) than XRP/USD or XRP/USDT.
This data strongly suggests that the sell-off trend initiated on Korean exchanges, with significant trading activity occurring there on December 9. Therefore, one can reasonably conclude that this sell-off trend in Korea has profoundly impacted the XRP market.
Instability in Korean Markets
The beginning of this month marked a period of political instability in South Korea. The country experienced a tumultuous political climate as President Yoon Suk Yeol declared martial law due to perceived national security threats from North Korea sympathizers. This declaration was met with strong opposition from lawmakers, leading to its subsequent withdrawal.
On December 2, the KOSPI index stood at 2,455.24 KRW, reaching a monthly peak of 2,500.53 KRW on December 3, which was at least 3.64% lower than the November high of 2,591.59 KRW. Between December 5 and 9, the market declined from 2,471.49 KRW to 2,361.23 KRW. Although the market has seen a 2.41% growth in the last two days, it has not fully recovered from the prior correction.
In conclusion, the recent decline in XRP’s market value can be attributed to several key factors, including profit-taking and significant trading activity in South Korean exchanges. The political unrest in South Korea has also contributed to market volatility. As the market continues to adapt to these changes, it remains to be seen how XRP will perform in the coming weeks.
