XRP’s Recent Surge Erased with 20% Dip Amid Crypto Crash

• XRP has dropped over 33% over the past week and 20% in the last 24 hours, reaching a low of $0.44.
• The crypto market has lost over $500 billion, marking a 14.5% decline and the most severe crash in over a year.

The cryptocurrency market is grappling with significant losses as the beginning of August has shown an unprecedented downturn. The primary trigger for this sell-off appears to be looming uncertainties regarding Jump Crypto’s sell-off. This issue has led to widespread panic among investors, worsening an already volatile situation.

XRP has taken a substantial hit, wiping out all gains from the past two weeks. Currently, XRP is down 19.57% on the daily chart, mirroring broader market struggles. The overall market has recorded $1.11 billion in liquidations.

Ripple (XRP) Price Chart (Source: CoinMarketCap)

What Causes XRP to Drop?

The past few days have been particularly harsh, with the global cryptocurrency market shedding over $500 billion in value, marking a 16% decline. This turned into a significant crash in over a year. Simultaneously, the Japanese stock market faced a slump, and the S&P 500 experienced a 4.4% drop over the past three days, influenced by weak employment data, sluggish growth in major tech stocks, and renewed recession fears.

Further, a much-anticipated closed-door meeting between SEC officials, which had grabbed the attention of crypto traders hopeful for a resolution with Ripple, was quickly canceled. Neither Ripple nor the SEC have provided any clarification, leaving the community in a state of uncertainty.

XRP’s performance has been particularly dismal, plummeting by 24% over the past week and 17% in the last 24 hours. Currently trading at approximately $0.44, XRP is at its lowest level in nearly a month, according to Coingecko.

The Crypto Fear & Greed Index now indicates “Extreme Fear,” a signal typically advising against substantial purchases during such tumultuous times.

Bitcoin (BTC) and Ethereum (ETH) have also been heavily impacted. Bitcoin briefly dipped below $49,100 for the first time since February, while Ethereum experienced a dramatic 23% drop in a single day and is now trading around $2,280.

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