Why Did XRP Price Tank In The Last 24 Hours?

• XRP price temporarily dipped under $3 again in the last 24 hours.
• A market analytics firm blamed the recent drop in the value of altcoins on US economic policies and Larsen’s latest whale move, which involved $140 million worth of XRP.

XRP price dipped temporarily under $3 per token on Friday after conquering $3.65 on two occasions in over a week. The cryptocurrency community has a lingering question about what could have been holding back the digital asset in the past few days, igniting fears that the trend could wipe out its recent gains on its way back to $2.65.

Factors Pulling the Price of XRP

The Motley Fool was quite puzzled about what has been suppressing the price of XRP and other altcoins in the last 24 hours. According to the market research firm, there was no apparent reason behind their move.

Nonetheless, the report blamed President Donald Trump’s sweeping reciprocal tariffs as the possible culprit behind the event. It explained that the above 15% rate is higher than what analysts expected, triggering concerns about higher inflation and other economic struggles in the US.

ADVERTISEMENTCiting FxPro Chief Market Analyst Alex Kuptsikevich’s comments, The Motley Fool claimed that altcoin sentiment would remain pessimistic if it fails to log substantial gains soon. To date, investors are bracing for the likelihood of further corrections in the prices of digital assets, including XRP.

Chris Larsen Unloads $140 Million XRP to Exchanges

News about Ripple Co-Founder Chris Larsen moving around $140 million worth of XRP from his crypto wallets to centralized exchanges is not helping in the present state of the market either. Usually, such a move hints at the emergence of whaleish selling pressure.

Additionally, investors typically see insider selling as a bearish signal, especially coming from a key figure within Ripple. They take it as a lack of confidence in the asset.

ADVERTISEMENTHowever, one should note that it may not always be the case. Larsen could be selling for reasons other than lack of confidence in XRP. One angle is that he may be looking to reallocate the funds to other investments, or he simply needs them for personal expenses.

Given Larsen’s multibillion-dollar stake in XRP, his recent withdrawal from his wallets to exchanges is a chump change compared to his remaining holdings, especially if the token has the potential to hit a massive recovery following the ongoing ordeal.

XRP: An Interesting Asset

For The Motley Fool, XRP is an interesting token due to its resilient network. Moreover, the token’s links to Ripple, which is now making considerable advances in expanding its cross-border payment solutions worldwide, reinforce its ecosystem.

On the other hand, the market research firm warned investors to err on the side of caution in their trades, as XRP remains a very volatile asset.

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