XRP erases $20 billion in a day amid SEC silence

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XRP has lost more than $20 billion in market capitalization in the past 24 hours, per data retrieved by Finbold from CoinMarketCap.

To be more precise, the token has seen its market cap drop from $121.81 billion on April 6 down to $100.28 billion by press time on Monday, April 7.

What’s more, the XRP market cap drop happened on a strong surge in trading volume, which almost quadrupled, having increased from $2.26 billion to $9.6 billion in the same timeframe.

All the while, the Securities and Exchange Commission is remaining oddly silent regarding the final resolution of the Ripple v. SEC case. Although not a clear-cut bearish signal, it’s notable that in previous instances, the commission officially dropped cases soon after similar announcements — something that has yet to materialize in XRP’s case.

The losses might not stop there, either — the wider cryptocurrency market has lost $300 billion over the course of the weekend, and XRP’s network activity collapsed by as much as 65%, according to on-chain data.

XRP price action and technical analysis

By press time on April 7, XRP was changing hands at a price of $1.78, with a 14.96% drop on the daily chart which has brought year-to-date (YTD) losses up 14.21%.

The asset’s prior outperformance makes it a prime target for a sharp correction in the present. Although it hasn’t marked a greater loss than Bitcoin (BTC), which is currently in the red for 18.28%, XRP is currently down more than the S&P 500, which has lost 13.54%, on a year-to-date (YTD) basis.

Technical analysis also paints a rather grim picture. With the move below $2, price action could have confirmed a head and shoulders pattern shared by chart researcher Ali Martinez in an April 4 X post. If the pattern is legitimate, it could herald a drop to levels as low as $1.30 for the token.

Featured image via Shutterstock

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