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Fox Business Senior Correspondent Charles Gasparino has questioned XRP’s monthly price decline in relation to Bitcoin (BTC). While XRP plunged 15% over the past month, the value of Bitcoin only dropped 1%.
The question raised by Gasparino is likely based on the strong correlation that exists between Bitcoin and XRP. This means that XRP tends to follow the direction of BTC, but with greater intensity.
Thus, while the 1% BTC dip dragged the broader market lower, XRP dropped harder due to its strong correlation.
The XRP dependence on BTC is also seen in its failure to hold above the $2.50 support level following recent Bitcoin volatility.
Notably, both assets surged in early October — BTC above $126,000, and XRP near $3. However, the market soon experienced widespread profit-taking as traders locked in gains, hitting altcoins hardest.
XRP faced a series of liquidations this month. In one instance, XRP traders saw $8.13 million of their positions wiped out in four hours.
Besides the broader market volatility, ongoing delays in the approval of spot XRP exchange-traded funds (ETFs) have dampened enthusiasm.
The BTC and Ethereum (ETH) ETFs saw massive inflows, but the lack of a similar regulatory nod for XRP has left the coin vulnerable.
As of press time, XRP is valued at $2.40, up 1.28% over the past 24 hours. However, the daily trading volume declined by 19.7% to $3.35 billion. This suggests that investors are still skeptical about accumulating the asset.
Nevertheless, other positive developments currently exist in the XRP ecosystem that could help uplift the price. For instance, XRP has witnessed explosive growth and activity on the CME exchange.
According to a report from U.Today, CME recorded over 567,000 XRP and Micro XRP futures contracts traded on its derivatives market in five months. This increased demand for XRP on CME positions the coin for a major rally.
Additionally, the XRP Ledger (XRPL) is close to hitting the 100 million transaction milestone. This is a testament to its resilience, which could increase appeal for XRP, eventually leading to higher prices.
Analyzing the XRP price reveals the coin is at a turning point that may affect its course in the near future. Analysts think the current stagnation could become a strong bullish reversal, paving the way for a possible rally toward $3 in the coming weeks.
