The post Why XRP Dropped 15% While Bitcoin Fell Only 1% This Month appeared first on Coinpedia Fintech News
The crypto market faced turbulence this month. Bitcoin stayed relatively steady while XRP fell sharply.
Fox Business Senior Correspondent Charles Gasparino has questioned the stark performance contrast between Bitcoin and XRP.
Why XRP Fell More Than Bitcoin
Bitcoin fell only 1%, but XRP dropped sharply by 15%, raising questions about XRP’s steeper decline.
Historically, there has been a strong correlation between Bitcoin and XRP. When Bitcoin rallies, it often pulls the broader crypto market, including XRP, upward. While XRP often moves in the same direction as BTC, its price tends to fluctuate more sharply, which may explain its larger monthly decline.
October Liquidations Hit XRP Hard
Both XRP and Bitcoin traded higher in early October, with XRP reaching $3 and Bitcoin approaching its all-time highs. However, the crypto market faced massive liquidations on October 11–12, wiping out nearly $19 billion in positions.
XRP also saw a steep decline of over 40%, its sharpest one day drop in recent years, driven by large-scale liquidations and a notable drop in futures open interest. While small and midcap and small-cap cryptocurrencies like XRP plunged deeper, Bitcoin and Ethereum saw smaller losses of 11% and 13%, according to market maker Wintermute.
Moreover, the continued delays in approving spot XRP ETFs have impacted investor sentiment.
However, XRP and BTC have since recovered and are currently trading at $110,938 and $2.45, up 1.6% and 2% respectively.
Ripple Locks Over 126M XRP
Ripple’s recent decision to lock more than 126 million XRP tokens has sparked discussion across the crypto space. This move removes a significant amount of XRP from circulation, which could have an impact on the token’s price over the long term.
It could create a supply shock and potentially boost long-term value. With more than half of the total supply now locked, Ripple is showing its commitment to long-term growth. Further, the structured release of tokens through XRP’s escrow system adds predictability and stability, which makes it more appealing to institutional investors.
Analysts Predict Strong Upside for XRP
Analysts also remain optimistic about XRP’s outlook. According to Mikybull Crypto, XRP is preparing for the final expansion phase of the current cycle, with an initial target around $7. If momentum continues, the price could extend further, potentially reaching $11–$15.
While another analyst Javon Marks points out that XRP’s current price pattern closely mirrors a previous bull run. Based on this, he suggests the next major target could be around $9.90, a potential gain of over 309% from current levels, with the possibility of even higher prices.
Despite a weaker performance lately, XRP’s trends suggest the token could be poised for gains in the coming months.