After facing a significant bout of selling pressure, XRP has plummeted to the mid-$0.20 region and is now hitting price levels not seen since the lowest part of the 2018 bear market.
Importantly, this latest sell-off may be emblematic of increasing technical weakness that could lead XRP to drop significantly further in the future, with one highly celebrated analyst noting that the cryptocurrency could drop as low as $0.02.
XRP Plummets Amidst Widespread Altcoin Purge
At the time of writing, XRP is trading down nearly 9% at its current price of $0.269 and is down significantly from its 24-hour highs of over $0.30.
Importantly, XRP did post a slight bounce after hitting lows of $0.256 but has failed to maintain any upwards momentum in the time since.
XRP is not alone in facing significant selling pressure today, as many major altcoins posted a significant sell-off that has led many cryptos to drop 10% or more from their 24-hour highs.
Currently, Ethereum is trading down 8.8% at its current price of $189.3, Bitcoin Cash is trading down 7.7% at its current price of $315.7, and Litecoin is trading down just under 8% at its current price of $77.29.
This incredibly bearish price action is partially the result of Bitcoin’s recent rejection at $12,000, and subsequent drop to lows of roughly $10,000.
Although XRP is not alone in facing significant selling pressure today, Peter Brandt, a highly celebrated analyst, explained in a recent tweet that he believes XRP could drop as low as $0.02 in the future.
“Will Ripple be able to manipulate the market to keep $XRP above .2400? A serious breakdown at this level, and .020725 is in the cards,” he noted.
Could Fears Regarding Security Crackdown be Driving Today’s Drop?
Importantly, some analysts have noted that the SEC may be targeting some cryptocurrencies as securities, including XRP – which is closely associated with the FinTech company Ripple.
Tone Vays, a popular crypto analyst and a critic of XRP, said in a recent tweet that the SEC may be bringing “Thor’s Hammer” down on the crypto while referencing a report that shows that XRP could be considered a security based on the SEC’s digital asset framework.
“The SEC is bringing Thor’s Hammer…” he said.
Although it currently remains unclear as to whether or not the potential designation of XRP as a securities product could be a factor driving its bearish price action as of late, it is highly likely that this could ultimately be a catalyst that drives a sell-off that validates Peter Brandt’s aforementioned target.