Digital currency markets have seen some volatile action this week and during the last 24 hours following the SEC lawsuit against XRP , a number of coins shed a great deal of value. XRP itself has dropped a mind-altering 40% just in the past 24 hours. Coins like golem (GNT -19%), time new bank (TNB -17%), mossland (MOC -17%), and iot chain (ITC -16%) saw decent percentage losses as well.
At the time of publication, the entire crypto-economy is valued at $629 billion and because XRP lost so much value, bitcoin’s dominance index has risen above the 68% mark.
Just recently, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. and two of its executives. According to the U.S. regulator’s complaint, Ripple Labs “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.” Since then, the price of XRP fell like a rock, losing nearly 40% during the last 24 hours of trading sessions since the SEC announcement. The XRP plunge has also tugged a number of other crypto-assets down as well during the trading sessions on December 23.
Is this the bottom of Ripple’s price crash?
The truth is that traders need to wait to see what happens. Even if the market is in its third day of declines, it may not have reached bottom yet. In the meantime, this can be used to the XRP bulls’ advantage by capitalizing on the opportunity before others do, and dollar-cost-averaging down to the final bottom. As the old saying goes, “Buy when there is blood in the streets.”
XRP has certainly been bloodied in the last 48 hours!
In the weeks leading up to the XRP price crash, many publications were predicting a fundamental change in the way that money is moved. While some of these currencies did experience significant drops in value, most experienced increases in their value from buyers eager to get a position in these currencies. Even after this panic selloff in Ripple, the trend lines for all of the other top cryptocurrencies remained highly bullish, indicating that this is a dynamic market with significant potential to move higher in the near term.
There are a number of factors that have combined to create a very volatile history for the leading currencies, and if you’re an investor looking to get in on the action, it’s important to understand how the XRP crash happened and what you can do today to maximize your profits. Among the top four currencies, ether and bitcoin are hanging on to their recent gains.