{"id":128635,"date":"2020-03-23T09:24:54","date_gmt":"2020-03-23T09:24:54","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=128635"},"modified":"2026-04-20T07:05:08","modified_gmt":"2026-04-20T06:05:08","slug":"xrp-is-now-nearing-3-year-lows-whats-behind-the-massive-correction","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/xrp-is-now-nearing-3-year-lows-whats-behind-the-massive-correction\/","title":{"rendered":"XRP is now nearing 3-year lows: what&#8217;s behind the massive correction?"},"content":{"rendered":"<p>The price of XRP is nearing a three-year low, hovering at around $0.15. Last week, XRP fell to as low as $0.114, which it has not hit since May 2017. The underperformance of the cryptocurrency against both <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> and the USD comes as the appetite for high-risk assets is increasingly on the decline.<\/p>\n<h2>XRP should theoretically be outperforming most major cryptocurrencies<\/h2>\n<p>Since the 2017 bull market, <a href=\"https:\/\/cryptoslate.com\/coins\/xrp\/\">XRP<\/a> has <a href=\"https:\/\/cryptoslate.com\/major-ripple-supporter-sells-of-all-xrp-holdings-due-to-toxic-community\/\">struggled to maintain strong momentum<\/a> despite high-profile partnerships with major financial institutions in the likes of SBI Holdings and <a href=\"https:\/\/cryptoslate.com\/why-liquidity-of-xrp-in-mexico-is-surging-after-moneygram-partnership\/\">Moneygram<\/a>.<\/p>\n<figure id=\"attachment_127397\" aria-describedby=\"caption-attachment-127397\" style=\"width: 480px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/cryptoslate.com\/major-ripple-supporter-sells-of-all-xrp-holdings-due-to-toxic-community\/\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-127397\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-toxic-1024x538.jpg\" alt=\"Major Ripple supporter sells all of her XRP holdings due to toxic community\" width=\"480\" height=\"252\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-toxic-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-toxic-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-toxic-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-toxic.jpg 1200w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/><\/a><figcaption id=\"caption-attachment-127397\" class=\"wp-caption-text\">Related: <a href=\"https:\/\/cryptoslate.com\/major-ripple-supporter-sells-of-all-xrp-holdings-due-to-toxic-community\/\">Major Ripple supporter sells all of her XRP holdings due to toxic community<\/a><\/figcaption><\/figure>\n<p>Since surpassing the $1 resistance level in April 2018, XRP has never come close to retesting it again, recording five consecutive lower lows at a larger time frame over the past three years.<\/p>\n<p>In April 2018, September 2018, June 2019, and February 2020, XRP rejected $1, $0.77, $0.5, and $0.35 respectively, leading to an extended bear market.<\/p>\n<figure id=\"attachment_128636\" aria-describedby=\"caption-attachment-128636\" style=\"width: 2183px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-128636\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-4.png\" alt=\"xrp\" width=\"2183\" height=\"1398\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-4.png 2183w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-4-300x192.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-4-1024x656.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-4-768x492.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-4-1536x984.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/1-4-2048x1312.png 2048w\" sizes=\"(max-width: 2183px) 100vw, 2183px\" \/><figcaption id=\"caption-attachment-128636\" class=\"wp-caption-text\">The price of XRP is nearing a 3-year low after five consecutive lower lows in the past three years (source: tradingview.com)<\/figcaption><\/figure>\n<p>Theoretically, XRP should have outperformed major cryptocurrencies in 2020 following a decline in <a href=\"https:\/\/cryptoslate.com\/xrp-is-the-key-to-ripples-profitability-heres-why-that-could-be-a-big-issue\/\">sales of the cryptocurrency by Ripple<\/a>, a company that develops infrastructure for the ecosystem.<\/p>\n<figure id=\"attachment_126874\" aria-describedby=\"caption-attachment-126874\" style=\"width: 480px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/cryptoslate.com\/xrp-is-the-key-to-ripples-profitability-heres-why-that-could-be-a-big-issue\/\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-126874\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-profit-1024x538.jpg\" alt=\"XRP is the key to Ripple\u2019s profitability; here\u2019s why that could be a big issue\" width=\"480\" height=\"252\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-profit-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-profit-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-profit-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/03\/xrp-profit.jpg 1200w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/><\/a><figcaption id=\"caption-attachment-126874\" class=\"wp-caption-text\">Related: <a href=\"https:\/\/cryptoslate.com\/xrp-is-the-key-to-ripples-profitability-heres-why-that-could-be-a-big-issue\/\">XRP is the key to Ripple\u2019s profitability; here\u2019s why that could be a big issue<\/a><\/figcaption><\/figure>\n<p>In the fourth quarter of 2019, Ripple substantially dropped sales of XRP to institutions and the distribution of the cryptocurrency to exchanges.<\/p>\n<p>On its blog, the company <a href=\"https:\/\/ripple.com\/insights\/q4-2019-xrp-markets-report\/\">noted<\/a>:<\/p>\n<blockquote><p>&#8220;Last quarter, total XRP sales were $13.08 million (USD) vs. $66.24 million the previous quarter. In addition, Ripple continued the pause of programmatic sales, focusing solely on our over-the-counter (OTC) sales with a few strategic partners, who are building XRP utility and liquidity in strategic regions including EMEA and Asia.&#8221;<\/p><\/blockquote>\n<p>The decline in XRP sales likely alleviated selling pressure on the cryptocurrency exchange market, which, in theory, should have served as a <a href=\"https:\/\/cryptoslate.com\/xrp-forming-highly-bullish-price-cycle-as-one-analyst-eyes-a-big-upside\/\">factor for recovery.<\/a> In spite of lower XRP sales, the cryptocurrency found it difficult to break out of any meaningful resistance level in recent months.<\/p>\n<p>As the <a href=\"https:\/\/cryptoslate.com\/bitcoin-tumbles-in-tandem-with-global-market-after-trump-coronavirus-address-here-are-the-levels-to-watch\/\">coronavirus pandemic<\/a> removed any appetite for high-risk assets including single stocks and cryptocurrencies, the steep correction of the cryptocurrency intensified.<\/p>\n<p>When the Bitcoin price dropped to as low as $3,600 in a fastened price drop due to a cascade of liquidations across all exchanges, the XRP price dropped to as low as $0.114.<\/p>\n<h2>Is there any hope for recovery?<\/h2>\n<p>The current price trend of XRP is similar to that in early 2017, prior to the bull run of cryptocurrencies that saw the Bitcoin price spike to as high as $20,000 and $23,000 on exchanges in South Korea.<\/p>\n<p>For XRP to see a strong recovery to previous highs in the medium-term, it would need to see a December 2017-esque upsurge to cleanly break out of resistance levels at $0.35, $0.5, $0.77, and $1.<\/p>\n<p>At this macro landscape where the <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-03-18\/bitcoin-s-crash-seen-driven-by-long-sought-institutional-buyers\">institutional sell-off of all types of assets<\/a> is rapidly increasing on a daily basis, major cryptocurrencies including XRP are unlikely to recover until the U.S. stock market and global equities rebound.<\/p>\n<p>With fiscal policies and large-scale stimulus packages unable to boost the confidence of investors towards the stock market, the cryptocurrency market is anticipated to stagnate over the next few months.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The price of XRP is nearing a three-year low, hovering at around $0.15. Last week, XRP fell to as low as $0.114, which it has not hit since May 2017. The underperformance of the cryptocurrency against both Bitcoin and the USD comes as the appetite for high-risk assets is increasingly on the decline. XRP should [&hellip;]<\/p>\n","protected":false},"author":187,"featured_media":128639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>XRP is now nearing 3-year lows: what&#039;s behind the massive correction?<\/title>\n<meta name=\"description\" content=\"The price of XRP is nearing a three-year low, hovering at around $0.15. 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