Ripple’s token XRP saw an impressive surge at the end of last month. The price reached $1.66 in 2026. The rally was short-lived and XRP’s price is now falling. CoinGecko data The graph shows that XRP’s price fell by almost 6% during the last seven days. The asset has still risen by over 35% on the charts for the last 14 days and 26,3% in comparison to the month before. Discuss if this latest dip in price will cause the cryptocurrency to rise further.
Can XRP continue to drop in price?
XRP’s surge in August was a result of Bitcoin (BTC) reclaiming the $80,000 mark after months’ worth of struggles. BTC’s rise was fuelled by a number of factors. First, the cryptocurrency event held at President Donald Trump’s White House caused a significant surge in investor trust. Trump announced that the US will be buying large amounts of Bitcoins (BTC) as well as other crypto currencies.
The US Treasury decision to boost bond purchases fueled the XRP rally. It led to an influx of liquidity that trickled through the cryptocurrency markets.
Nevertheless, it seems that the current upswing will not last. Both XRP, and the overall cryptocurrency market have appeared to slow down. Kevin Warsh’s speech in Jackson Hole, which was considered hawkish by the Federal Reserve Chairman, may have increased investor anxiety. Warsh stressed the rising rate of inflation, and hinted that interest rates could be raised. Rate increases could cause the market to lose capital. If rates rise further, XRP may suffer another blow.
You may also like: XRP Just Reached the Level an Analyst Was Waiting For, Sets Target
Also, liquidity generated by the US Treasury through the bond purchase backs must be redirected to its funds. When that occurs, XRP may take another blow. We may see XRP drop below $1 once more if these two developments occur.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: watcher.guru
