XRP’s market capitalization plummeted by over $20 billion within just 24 hours. According to fresh data from CoinMarketCap, XRP’s market cap tumbled from $121.81 billion on April 6 to $100.28 billion by the morning of April 7. The sharp decline coincided with a significant increase in trading volume, which soared from $2.26 billion to a staggering $9.6 billion during the same period.
This steep drop comes despite XRP’s prior bullish run, which made it one of the standout altcoins in recent months. However, with the sudden shift in market momentum, XRP’s strong gains have turned into mounting losses, signaling a potentially deeper correction ahead.
Ripple v. SEC Case Casts Uncertainty Over XRP’s Future
While the market experiences a selloff, the United States Securities and Exchange Commission (SEC) remains noticeably silent on the outcome of the long-standing Ripple v. SEC lawsuit. Historically, the SEC has often dismissed cases shortly after issuing major announcements. Yet, in this instance, XRP holders continue to wait for clarity.
This silence has only amplified uncertainty, fueling speculation that regulatory ambiguity might contribute to the token’s latest selloff. Without any updates, traders are left navigating choppy waters and relying heavily on technical indicators.
Market-Wide Volatility Weighs on XRP
It’s not just XRP feeling the pressure. The broader cryptocurrency market has lost $300 billion over the weekend alone, triggering panic across the board. Notably, XRP’s network activity has also collapsed by as much as 65% based on recent on-chain metrics.
By April 7, XRP traded at $1.78, representing a 14.96% drop over the previous 24 hours. This daily decline brought its year-to-date (YTD) losses to 14.21%, placing it behind the S&P 500’s 13.54% YTD decline and just behind Bitcoin’s 18.28% drawdown.
Technical Indicators Suggest Deeper Trouble Ahead
From a technical standpoint, XRP may be heading toward even lower price levels. Analysts, including chartist Ali Martinez, pointed out a potential head and shoulders pattern in an April 4 post on X (formerly Twitter). This bearish pattern typically precedes a sharper fall. If validated, XRP could slide further to around $1.30.
The breach of the $2 mark confirms this bearish setup, adding weight to concerns of prolonged downside pressure. As investors watch closely for any moves from the SEC or signs of network recovery, XRP remains highly vulnerable to broader market sentiment and technical triggers.
Related article: XRP’s Path to $15: Analysts Back Bullish Breakouts With Strong Technical and Regulatory Fuel
Conclusion: Can XRP Reclaim Stability?
With regulatory silence, evaporating network activity, and rising bearish pressure, XRP finds itself at a critical juncture. Although the token’s previous performance made it an investor favorite, its sharp correction underscores the volatility inherent in the crypto market.
Going forward, traders must closely monitor regulatory developments and technical patterns. Unless the SEC breaks its silence or market sentiment shifts, XRP may continue to struggle below the $2 threshold.
