TL;DR

Ripples native token was rejected at $3.1 yesterday and nosedived by over 6% in the following hours to a low ot $2.9. This particular price drop comes in a rather surprising period, as Ripple and its cryptocurrency have seen some enhanced adoption developments lately.

XRPUSD. Source: TradingView

XRPs Price Struggles

Looking on a monthly scale, XRP managed to do the unthinkable in mid-July when it broke out of its consolidation range at around $2.2-$2.3 and shot up to a new all-time high at over $3.6 a moment that its community had waited for over seven years.

However, the subsequent correction was almost immediate and culminated last week when the asset plunged to $2.73 (on Bitstamp) as whales were disposing of large token quantities. Nevertheless, XRP bounced off in the following days and jumped to $3.1 yesterday despite some warnings by analysts.

As the perma-bullish XRP Army was convinced that the $3 resistance had been conquered and turned into support, the bears reemerged and pushed the asset south. Earlier today, Ripples cross-border payments token dumped to $2.9, which represented a 6.5% daily decline.

Despite recovering some ground since then, XRP is still 4% down on the day and is well below $3.

Why So?

Obviously, the most probable reason that can be listed is the overall market condition, as almost all digital assets have failed to post any substantial gains in the past several days. The global macro situation also seems quite uncertain.

However, Ripple and its native token have been the subject of quite a few positive developments lately. As reported earlier today, South Koreas BDACS announced support for XRP. Separately, rumors emerged recently that BlackRock might be joining the XRP ETF race.

Last but not least, Japans largest banking group, SBI Japan, said in its Q2 report that it had filed to launch ETFs tracking the performance of bitcoin and XRP. Although the report was published on July 31, it reached social media channels and mainstream media in the past day or so, which should, at least in theory, positively impact the underlying assets price.

BREAKING: The largest banking group “SBI Japan”, is planning to launch two ETFs linked to Bitcoin, #XRP and Gold! pic.twitter.com/NaeJVNLnq0

This hasnt been the case, though, as explained above, and XRP continues to struggle below the crucial $3 resistance. If you want to read more about the latest developments around Ripple, you can check this dedicated article.