Ripple’s XRP token is struggling to maintain its value, trading near $1.04 after hitting a daily low of $1.01, which threatens a further decline to $0.90. The cryptocurrency has erased its gains from the last two years, leaving long-term investors at a loss despite institutional ETF investments and the SEC dropping its case, while broader geopolitical tensions also weigh on the market.
Ripple’s native token, XRP, is close to falling below the $1 mark, trading at $1.04 after reaching a day’s low of $1.01. Another decline could take the cryptocurrency to $0.90, erasing all gains generated over two years. This makes long-term holding a painful event for investors who entered positions during that period.
Investors from the last two years are mostly underwater despite an influx of investments through institutional ETFs. The Securities and Exchange Commission dropping its case on Ripple did not help the altcoin remain steady in the indices.
The company has been forging new partnerships with banks, governments, and financial institutions to bring monetary systems onto blockchain. However, XRP is disconnected from Ripple, as the company’s revenue and cash stream do not mix with its native token.
The broader cryptocurrency market is facing turbulence from various macroeconomic factors. The US-Iran war has entered 122 days, and Iran has threatened a “complete halt” in negotiations if attacks continue. Market prospects are also affected by AI-related capital expenditures worrying Wall Street.
