XRP Price Slides 3.64%, Can It Recover?

XRP price drops 3.64% amid recovery concerns; Ripple faces security breach challenges

Crypto News: The XRP Ledger's native cryptocurrency, XRP has dropped significantly during the last day, a loss of 3.64%. This drop coincides with a negative trend that has impacted the whole cryptocurrency market in addition to certain particular difficulties that XRP is facing. Following the recent price adjustments, XRP is currently valued at US$26.96 billion on the market. XRP has already moved by -9.7% this year. At the time of writing, the XRP Price is US$0.492.

XRP uses a network of validators to execute transactions in a decentralized and safe way, making it possible to make quick and inexpensive cross-border payments. Tokenization, decentralized apps, and smart contracts are just a few more uses for XRP. A devoted and vibrant community of users, developers, and advocates exists for XRP because they see its promise and practicality.

The personal XRP accounts of Chris Larsen, the executive chair and co-founder of Ripple, were compromised in the most recent Ripple hack. The hackers used a variety of cryptocurrency exchanges and platforms to launder over 213 million XRP tokens, which were valued at US$112 million at the time. Law enforcement was involved, according to Larsen, who also stated he informed the exchanges to freeze the impacted addresses. Ripple's network and operations were unaffected by the breach.

But XRP also has to overcome several significant obstacles that might harm its uptake and pricing performance. Among these is the continuing legal dispute that exists between the XRP Ledger's creator, Ripple, and the Securities and Exchange Commission (SEC) of the United States. According to the SEC, federal securities laws were broken by Ripple and its management when they marketed unregistered securities in the form of XRP coins. Since the lawsuit was filed in December 2020, the XRP market has seen significant volatility and uncertainty.

Competing with other cryptocurrencies that provide equal or better cross-border payment options presents XRP with additional difficulties. The XRP Ledger technology is also the foundation for Stellar Lumens (XLM), and two of them with greater market shares and network effects are Bitcoin (BTC) and Ethereum (ETH). Because several financial organizations and central banks are creating their own digital currencies or payment systems, the market for XRP and other cryptocurrencies may eventually see a downturn.

Long-term recovery and growth are still possible for XRP despite these obstacles. According to technical research, XRP is getting close to a previous support zone, when buyers typically enter the market and drive prices higher. This is among the elements that might raise the price of XRP.  The fundamental analysis, which concentrates on the uptake and innovation of XRP and its ecosystem, is another element that might drive up the price of the cryptocurrency. With increasingly favorable regulatory conditions for XRP in the Asia-Pacific area, Ripple is continuing to grow its global network of clients and partners. In addition, Ripple is developing new features and products. One such example is the XRP Ledger 1.7.0, which brings several upgrades and improvements.

In summary, although XRP has dropped significantly over the last day, there is still a chance that it may rise again in the future. Technical, fundamental, and market circumstances are just a few of the variables that affect XRP's price. Because of this, it's crucial to conduct due diligence and study before purchasing XRP or any other cryptocurrency.