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The crypto market capitalization has fallen below $200 billion due to huge panic sell-off. Ethereum, XRP and other altcoins are losing their value.
Today will remain engraved in most crypto enthusiasts and investors’ minds, not for the good reasons, but rather since most altcoins, including Ethereum and XRP, have shed a huge portion of their prices by about 20-30% in the past 24 hours. The huge free fall has been attributed to a panic sell-off, as investors run for safety to avoid risky assets.
This proves the theory that crazy speculation is the key driving factor to most altcoins bull rally. Ethereum, the second by market capitalization, at the time of writing had shed close to 32% in the past 24 hours, leaving it at $135.5.
Ripple’s XRP which is the third by market capitalization seems to have not been affected as badly off than the rest. At the time of writing, it was down by 23.53% in the past 24 hours, leaving it trading at $0.1592.
As coronavirus continues proving to be a huge mountain than anticipated, investors will continue disposing of their huge amounts of coins to the market. As a result, most altcoins are left with the bare minimum value, whereby, only the diehard investors are holding. The whole crypto market cap has crippled down to hit below $200 billion levels.
Closer Look at XRP Free Fall
XRP has been one altcoin with promising future, with Ripple pushing for its adoption worldwide through incentives given to its partners. Ripple as a company has been holding the largest share of coins in the escrow account. Therefore, its action to dump them into the market has been a significant stabilizer of XRP prices.
However, XRP has had a fair share of enthusiast who sees it as the future ‘Bitcoin’. The number has been steadily growing, considering Ripple was looking forward to dumping more coins into the recently opened Indian market. As a result of huge retail accumulation, XRP was not cushioned on any sell-off.
The free-fall might not be as huge also because it is backed by financial institutions that are on long term investment with RippleNet. With over 300 financial institutions worldwide using it for cross-border transactions, XRP might see the light of the day.
How about Ethereum?
Ethereum being the second from bitcoin was the worst hit among the three (BTC, ETH, XRP) by the panic sell-off, as it fell with over 30% in the past 24 hours. It opened the day with hopes of pushing above the previous day’s lows, $190, however, it has drastically fallen to trade below $130.
As a result of the free fall, all the gains made since the calendar flipped have been wiped out. Having found a support at $130, if things don’t change as per the time of writing, the next stopover will be at $84. A price that was last seen in Ethereum back in December 2018